Analysts Reassess Oracle Corporation (ORCL)'s Long-Term Prospects

Oracle Corp (NYSE:ORCL) is one of the stocks with huge growth potential, according to the media. On January 23, Morgan Stanley cut Oracle Corp (NYSE:ORCL)’s price target to $213 from $320 while reiterating an Equal-weight rating, warning that the company’s GPU-as-a-service expansion poses “little room for error” amid rising capital needs, funding pressures, and a weaker profit outlook.

Analyst Keith Weiss noted the initiative offers sizable revenue potential but will likely push EPS below targets, with FY28 and FY30 forecasts of $8.51 and $10.02 versus Oracle’s $10.65 and $21.00 goals. The bank projects $275 billion in cumulative capex from FY26–FY28, gross debt above $400 billion, and leverage exceeding 5x, underscoring significant funding demands and ratings risk, while recommending CDS over benchmark bonds.

On January 20, analysts at Guggenheim reiterated a Buy rating on Oracle Corp and set a $400 price target. In addition, the research firm reiterated that the company is its best idea in the software sector.

According to the research firm, the customer concentration risks associated with the company’s association with OpenAI have been blown out of proportion. The research firm insists the company is well-positioned to unlock significant opportunities from its association with the artificial intelligence startup.

Consequently, Guggenheim expects Oracle earnings per share to grow at hyper rates, with free cash flow reaching ‘very significant numbers’. Likewise, the research firm expects the company’s financial performance to become irrefutable within about 5 years.

Oracle Corporation (NYSE:ORCL) is a major American technology company specializing in cloud-based solutions, enterprise software, and hardware systems. It is best known for its Oracle Database management system, cloud computing services (OCI), and software applications for business functions.

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