Citi Lowers Oracle (ORCL) PT to $375 on Valuation Concerns, Maintains Buy Rating Expecting Strong Bookings

Oracle Corporation (NYSE:ORCL) is one of the most profitable tech stocks to buy. On December 4, Citi analyst Tyler Radke lowered the firm’s price target on Oracle to $375 from $415, while keeping a Buy rating on the shares. Citi lowered its price target for Oracle, citing the compression of the stock’s valuation as the reason for the cut. Despite this adjustment, the firm anticipates that Oracle will report strong bookings figures.

Earlier in its FQ1 2026 earnings report, Oracle Corp. disclosed generating a total revenue of $14.9 billion, which represents an 11% increase from the previous year. Cloud services were the main driver, with Total Cloud revenue growing 27% to $7.2 billion. Cloud Infrastructure revenue surged 54% to $3.3 billion, with OCI Consumption revenue increasing by 57%. The company’s RPO saw a massive increase of 359% from last year, reaching $455 billion.

Oracle’s core database business showed significant strength, with Cloud Database Services revenue reaching annualized revenues of ~$2.8 billion, up 32%. Within this segment, Autonomous Database revenue grew 43%, and Multi-cloud REV Database revenue saw explosive growth of 1,529% in FQ1. The Cloud Application revenue grew 10% to $3.8 billion, with Strategic Back Office Application revenue specifically growing 16% to $2.4 billion. In contrast, Total Software revenue for the quarter decreased by 2% to $5.7 billion. Additionally, Oracle has become a key player in AI workloads, securing major contracts with companies like OpenAI, Meta, NVIDIA, and AMD.

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide.

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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Disclosure: None. This article is originally published at Insider Monkey.