BMO raises Oracle's (ORCL) price target to $245

2025-07-02 15:08:00

BMO Capital raised Oracle’s price target to $245 from $235, citing potential capital expenditure needs impacting free cash flow. Analysts expect new capital raises in fiscal 2026 or 2027 due to ongoing dividend commitments and rising capex for cloud infrastructure and AI. Despite potential dilution, BMO maintains an Outperform rating.

The firm believes Oracle’s growth in cloud and AI justifies a favorable risk/reward profile, leading to only slight adjustments in estimates. BMO remains bullish on Oracle’s strategy and business model durability, supporting the raised price target. Despite financial balancing challenges, Oracle’s long-term prospects are seen as strong.