Cantor Fitzgerald Starts Oracle (ORCL) at Overweight

Cantor Fitzgerald analyst Thomas Blakey initiates coverage on Oracle (NYSE: ORCL) with a Overweight rating and a price target of $214.00.

The analyst comments: "Oracle is a leader in data management with commanding share in the relational database market and a burgeoning AI business via its Oracle Cloud Infrastructure (OCI) business, which is approaching half of its Cloud business by F26 (FYE May), or 25% of total from 17% today. Oracle’s cloud-based business model offers multiple vectors of dynamic growth and margin accretion opportunity (43.4% EBIT margin MRQ), in our view. OCI is being driven by AI and set to accelerate in 2HF25 toward 60%+ growth while cloud database services (CDBS) both on OCI and at Cloud Services (CDBS @ CS), such as Azure and AWS, drive margin-accretive revenues in coming quarters and years. Offsetting AI and CDBS tailwinds NT to revenue and EBIT accretion is NT capex related to said AI likely pressuring GM% early on, which we view as logical and offering LT benefits justifying any NT pressure. Provided Oracle benefits NT and LT from AI and LT OCI accretion benefits, primarily tied to CDBS, in our view, we rate ORCL shares Overweight with $214 PT, or 8.5x EV/C26E revenue vs. overall software at 8.9x, MSFT at 9.1x and one-year average NTM historical multiple for ORCL shares at 8.2x."

For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $159.54 yesterday.

You May Also Be Interested In