Oracle Price Target Raised to $415 at Citi on Long-Term AI Outlook

Citi boosted its price target for Oracle (ORCL, Financials) from $395 to $415 and kept its Buy rating. The recent drop in shares was seen as a chance for investors to buy more. The new objective is the highest among Wall Street experts. This is because Oracle is growing in both cloud infrastructure and artificial intelligence.

Oracle shares have fallen more than 10% from their recent highs following first-quarter results, which drew questions about backlog quality and profitability. Even so, the company's fundamentals remain solid, with a 70% gross margin and nearly 10% revenue growth over the past year.

Citi analysts said Oracle's cloud business is broadening its customer base and expect management to offer more visibility on spending and returns from AI projects. They forecast earnings per share growth above 30% annually between fiscal 2026 and 2030, supported by efficiency gains and rising GPU margins, which could reach 35%40% by decade's end

Other brokerages also remain upbeat. TD Cowen reaffirmed its $375 target and Buy rating, and Phillip Securities initiated coverage with a $350 target, pointing to Oracle's $455 billion backlog tied to multicloud partnerships. Oracle recently launched its Health Connection Hub to improve data sharing among healthcare providers, part of a broader strategy to diversify cloud applications.