Citi Reiterates Buy on Oracle (ORCL), Sees Pullback as Buying Opportunity

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Every Investor Should Watch. On October 10, Citi reiterated the stock as “Buy” and raised its price target to $415 per share from $395. According to the firm, the recent pullback in shares revolves around concerns regarding backlog quality and profitability.

The selloff is a buying opportunity, the firm noted. The company’s customer base is expanding, which is in turn driving its cloud growth.

“After a historic Q1, ORCL shares have traded off 10%+ from recent highs on concerns around quality of backlog, profitability concerns following a slew of press reports and broader AI bubble/circularity concerns.”

Its earnings per share growth is forecast above 30% annually between fiscal 2026 and 2030. This is backed by efficiency gains and rising GPU margins, likely to reach 35%40% by decade’s end.

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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