Jefferies raises Oracle's target to $220, citing cloud and AI growth

From Yahoo Finance: 2025-06-23 12:23:00

Jefferies raised Oracle’s price target to $220, citing strong momentum in cloud infrastructure and AI services. The company is expected to see a sharp acceleration in cloud growth in fiscal 2026, with total cloud revenue projected to rise 40%. Financially, Oracle remains solid, with $57.4 billion in revenue over the last twelve months and a gross margin of 71%. Q4 results were mixed, with SaaS beating expectations but IaaS falling short. Despite this, Jefferies downplayed the miss, emphasizing broader fundamentals and long-term positioning. The firm’s optimism is driven by Oracle’s backlog growth (RPO), which it believes could convert into revenue. Jefferies sees Oracle playing an expanding role in the AI infrastructure race, becoming one of its backbone providers. While acknowledging Oracle’s potential as an investment, Jefferies believes other AI stocks offer greater promise for higher returns and limited downside risk.

Read more: Jefferies Hikes Oracle Target to $220, Cites AI-Driven Cloud Acceleration