Oracle is expected to announce its fiscal fourth-quarter results after the market closes on Wednesday, with a particular emphasis placed on the potential growth of Oracle Cloud Infrastructure (OCI), driven by the demand for AI.
Jefferies analysts, with a "buy" rating for the stock, have raised their price target to $200 from $190, following a weekend note to clients anticipating an inflection in both OCI and backlog in the coming quarters as capacity constraints loosen. Meanwhile, Citi analysts maintain a "neutral" rating and a $185 price target. They suggest a higher interest in OCI database modernization amongst enterprise customers, though they keep an eye out for conviction about the speed of profitability enhancement in OCI.
Analysts' estimates compiled by Visible Alpha predict a 54% year-over-year increase in OCI revenue to $3.11 billion, and a 9% increase in total revenue to $15.57 billion. Adjusted net income is forecasted to rise to $4.75 billion, or $1.64 per share, up from last year's $4.61 billion, or $1.63 per share.
Dispersion of analyst opinions from Visible Alpha show six “buy” ratings and seven “hold” ratings for Oracle stock. Their shared price target of about $174 lies slightly below Monday's closing price just above $177. Oracle's stock value has made considerable gains recently, hitting roughly a 7% increase in June so far, and approximately one-quarter of their value since the conclusion of April.