Piper Sandler has adjusted its rating for Oracle (ORCL, Financial), moving from Overweight to Neutral. This decision comes with a revised price target of $130, reduced from the previous $190.
The reassessment takes into account Oracle’s momentum in artificial intelligence workloads, which is aiding sales growth. However, the benefits of this growth may be offset by potential pressures on the company's margins and free cash flow. These pressures are expected due to an increasing shift towards cloud services and anticipated rises in capital expenditures leading into fiscal year 2026.
Despite this downgrade, Piper Sandler remains optimistic about the long-term prospects for Oracle, seeing potential opportunities over the next three to five years. However, for the short term, particularly prior to fiscal 2026, the firm prefers to adopt a more cautious stance, as it anticipates a period focused on significant investment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Oracle Corp (ORCL, Financial) is $183.87 with a high estimate of $246.00 and a low estimate of $140.00. The average target implies an upside of 44.51% from the current price of $127.24. More detailed estimate data can be found on the Oracle Corp (ORCL) Forecast page.
Based on the consensus recommendation from 42 brokerage firms, Oracle Corp's (ORCL, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Oracle Corp (ORCL, Financial) in one year is $138.81, suggesting a upside of 9.09% from the current price of $127.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Oracle Corp (ORCL) Summary page.
