Oracle’s Stock Reset May Be Setting Up Its Next Rally – JPMorgan Says Risk-Reward Now Attractive

Barclays said Q3 performance helped address several investor concerns, including spending on infrastructure, profit margins tied to contracts, and the company’s ability to deliver cloud capacity on schedule.

• JPMorgan upgraded Oracle’s rating to ‘Overweight’ from ‘Neutral’ while setting a $210 price target.
• Barclays pointed to steady performance in Oracle’s software-as-a-service and maintenance segments, which could result in gains. 
• Baird also raised its price target to $215 from $200 and maintained an ‘Outperform’ rating. 

Oracle Corp. (ORCL) received fresh backing from several Wall Street firms after the cloud giant’s third-quarter (Q3) results topped expectations, prompting analyst upgrades and target price hikes, with firms stating that the recent selloff has improved the stock’s risk-reward profile. 

Oracle’s Q3 revenue grew 22% year-on-year (YoY) to $17.2 billion with an earnings per share (EPS) of $1.79, both surpassing the analysts’ consensus estimates of $16.91 billion and $1.7, respectively, according to Fiscal AI data. 

JPMorgan Turns More Bullish

JPMorgan upgraded Oracle’s rating to ‘Overweight’ from ‘Neutral’ while setting a $210 price target, though the firm trimmed its earlier $230 target, according to TheFly.

Analysts noted that Oracle’s share price has fallen about 55% since mid-September, resetting investor expectations. According to the firm, sentiment has shifted from strong confidence to widespread skepticism regarding the company’s long-term financial targets. Against that backdrop, JPMorgan sees a more attractive risk-reward profile for the stock.

Oracle stock traded over 9% higher in Wednesday’s premarket. 

Barclays Sees Outlook Improving 

Analysts at Barclays also expressed optimism, increasing the price target to $240 from $230 while reiterating an ‘Overweight’ rating. The firm said Oracle’s shares are "starting to work better from here” as Q3 performance helped address several investor concerns, including spending on infrastructure, profit margins tied to contracts and the company’s ability to deliver cloud capacity on schedule. 

Barclays also pointed to steady performance in Oracle’s software-as-a-service and maintenance segments, which it believes could support additional gains in the stock.

Baird also raised its price target to $215 from $200 and maintained an ‘Outperform’, citing that the latest results reinforce a constructive outlook for Oracle’s business.

What Are Stocktwits Users Saying? 

On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘high’ levels in 24 hours. 

The stock saw a 804% surge in message volume in 24 hours. 

A bullish Stocktwits user said the stock is disconnected from its real value. 

Another user said the stock could easily hit $170 on Wednesday. 

ORCL stock has gained over 3% in the last 12 months. 

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