Key Takeaways:
- Oracle (ORCL, Financial) faces a downgrade by Piper Sandler due to concerns over margins and free cash flow.
- The average analyst price target indicates significant potential upside for Oracle shares.
- Oracle's current valuation shows a moderate upside according to GuruFocus' proprietary metrics.
Oracle's (ORCL) financial outlook took a hit recently when Piper Sandler downgraded the stock, citing concerns over its margins and free cash flow. This comes even after the stock saw a 4.3% increase in premarket trading. The downgrade points to potential risks associated with increased capital expenditures in Oracle Cloud Infrastructure, which might affect future financial stability. Consequently, the price target was adjusted from $190 to $130.
Wall Street Analysts' Forecast
According to projections from 31 analysts, Oracle Corp (ORCL, Financial) carries an average target price of $183.87 over the next year, with targets ranging from a low of $140.00 to a high of $246.00. This average target suggests a potential upside of 44.51% from the current trading price of $127.24. For further details, you can explore the Oracle Corp (ORCL) Forecast page.
Brokerage Recommendations
The consensus recommendation among 42 brokerage firms for Oracle Corp (ORCL, Financial) is an average rating of 2.1, which translates to an "Outperform" status. To clarify, the rating scale ranges from 1 to 5, where 1 signifies a Strong Buy, and 5 indicates a Sell.
Oracle's Estimated GF Value
Drawing insight from GuruFocus, the estimated GF Value for Oracle Corp (ORCL, Financial) within the next year is pegged at $138.81, indicating a potential upside of 9.09% from the present price of $127.24. The GF Value reflects GuruFocus' assessment of the fair value at which the stock should be traded. This estimation is derived from the historical trading multiples of the stock, along with past business growth and projected future performance. Additional detailed analysis is available through the Oracle Corp (ORCL) Summary page.
