Mizuho Securities has issued a bullish outlook on Oracle (ORCL), reiterating an ‘outperform’ rating and a $320 price target, which implies a potential 164% upside. The firm argues that Oracle is significantly undervalued compared to its peers despite strong fundamentals and growth.
The company’s stock has seen a year-to-date decline of 38% due to debt concerns and credit downgrades, but Mizuho believes upcoming catalysts such as capacity monetization and application reacceleration will drive value. This sentiment is echoed by the majority of analysts covering the stock, with 35 out of 44 maintaining a buy or strong buy recommendation.
READ MORE FROM CNBC
Oracle's stock has faced significant headwinds recently, but Wall Street firm Mizuho believes the tech giant is poised for a dramatic turnaround. Mizuho reiterated its 'outperform' rating and maintained a $320 price target, suggesting a potential 164% increase from its recent closing price.
Analyst Siti Panigrahi highlighted that Oracle shares are trading at a steep discount compared to its infrastructure peers, despite demonstrating superior growth and strengthening execution across key areas like capacity conversion, remaining performance obligation quality, and financing visibility. The shares are currently down 38% year-to-date, a decline attributed to rising debt levels and credit downgrades that have prompted investors to divest.
Currently trading at 14 times its 2027 non-GAAP earnings, Oracle is considered cheaper than its competitors. Mizuho points to several near- and mid-term catalysts that could drive significant value appreciation. These include continued capacity monetization in fiscal years 2027 and 2028, a fading financing overhang, an early reacceleration in applications, and potential credit re-ratings.
This optimistic outlook aligns with the broader market sentiment. According to LSEG data, out of 44 analysts covering Oracle, 35 have a 'buy' or 'strong buy' rating on the stock.
/https://media.cnbc.com/dims/origin/108343257/Spider-Man-Brand-New-Day.jpg "Spider-Man Smashes Box Office Records with ‘Brand New Day’ Preview Haul")
