utsche Bank has raised its price target for Oracle (NYSE:ORCL) from $200 to $240, citing the company’s exceptional performance and growth outlook, particularly in cloud infrastructure and AI.
This new target is among the highest on Wall Street, with other firms such as UBS and Jefferies also raising their targets—UBS to $225 and Jefferies to $220—following Oracle’s latest earnings and guidance. Several other analysts, including JMP Securities, have also set their targets at $240.
Drivers Behind the Upgrades
- Stunning Revenue Growth Projections: Oracle projected “dramatically higher” revenue growth for its current fiscal year, with CEO Safra Catz forecasting at least $67 billion in revenue for fiscal 2026, up from prior guidance.
- Cloud and AI Momentum: Oracle’s Cloud Infrastructure (OCI) business reported 52% year-over-year revenue growth, and the company expects OCI growth to exceed 70% in fiscal 2026. This surge is driven by increasing demand for AI model training and data-intensive applications.
- AI Partnerships and Initiatives: Oracle’s joint venture with OpenAI, called Stargate, is seen as a significant step in delivering large-scale AI computing, positioning Oracle as a serious contender against AWS, Google Cloud, and Microsoft Azure.
- Strong Earnings Beat: Oracle’s recent quarterly results beat analyst expectations with $1.70 EPS (versus $1.64 expected) and $15.9 billion in revenue (versus $15.58 billion expected), reinforcing confidence in its growth trajectory.
- Order Backlog and Performance Obligations: Oracle expects its remaining performance obligations—a measure of future revenue from contracts—to double, indicating sustained demand and visibility into future earnings.
Market Reaction and Stock Performance
Following the earnings release and upgraded guidance, Oracle’s shares surged over 13% in a single day, closing at an all-time high of $199.86 and marking a more than 20% gain year-to-date in 2025. The stock has consistently led gains on the S&P 500, reflecting strong investor confidence.
Recent Analyst Price Targets for Oracle (June 2025)
| Analyst/Firm | New Price Target | Previous Target | Rating |
|---|---|---|---|
| Deutsche Bank | $240 | $200 | Buy |
| JMP Securities | $240 | $205 | Buy |
| UBS | $225 | $200 | Buy |
| Jefferies | $220 | $200 | Buy |
| Barclays | $221 | $202 | Buy |
| BMO Capital | $235 | $200 | Buy |
| JPMorgan | $185 | $135 | Hold |
The price target increase to $240 by Deutsche Bank and others reflects Oracle’s strong execution, bullish cloud and AI growth forecasts, and solid financial performance.
The company’s strategic investments and partnerships in AI infrastructure have positioned it as a leader in the next wave of enterprise technology, justifying the heightened analyst optimism and higher valuation.
