Most recently, BNP Paribas weighed in on Oracle’s financing, saying that it believes Oracle is confident about delivering on its 2030 targets, according to a report from Seeking Alpha.
- The analyst also noted that Oracle’s datacenter build and delivery targets are on track, and its financing is in place.
- Meanwhile, Melius Research downgraded Oracle to ‘Hold’ from ‘Buy’ with a $160 price target, adding that it believes the company’s debt and equity issuance will be an overhang for some time.
- Oracle has also captured retail attention, with messages around ORCL shares having increased more than 826% in the past 24 hours, according to Stocktwits data from Tuesday morning.
Oracle Corp. (ORCL) is in focus on Tuesday as the company’s stock rose more than 4.5% to hit a one-week high after trading lower over the week amid rising market concerns about debt and reliance on OpenAI.
ORCL shares climbed to an intraday high of $165.39, the highest since Feb. 2, according to data from Yahoo Finance.
The company has been gaining attention from Wall Street analysts as the sell-off among enterprise software stocks grows. Meanwhile, it has also captured retail attention, with retail messages around ORCL shares having increased by more than 826% in the past 24 hours, according to Stocktwits data from Tuesday morning.
Financing Stance
Most recently, BNP Paribas weighed in on Oracle’s financing, saying that it believes Oracle is confident about delivering on its 2030 targets, according to a report from Seeking Alpha.
BNP’s analyst Stefan Slowinski highlighted Oracle’s balance sheet status, after the company announced its capital plan for 2026 on Feb. 1, which includes raising up to $50 billion in debt and equity to fund the expansion of its cloud infrastructure business.
Slowinski noted that while the debt issuance was largely expected by the market, the equity issuance was a surprise. The analyst said that the firm believes that debt market pressures on software companies likely led to the equity issuance.
“Given the initial market reaction, we believe the fund raising has calmed some nerves,” Slowinski said in a note to investors, as per the report.
However, Slowinski said that he does not believe Oracle will resort to vendor financing as the company’s remarks in its latest results suggest it does not need more than the $100 billion it already has.
“Overall, we believe that Oracle remains confident in delivering on its 2030 targets,” Slowinski said. The analyst also noted that Oracle’s datacenter build and delivery targets are on track, and its financing is in place.
“While there may be more contracts that need to be won over the next few years and added to the backlog from here in order to meet 2030 top and bottom line targets, Oracle expects more orders from existing AI customers to come through as the AI arms race continues,” the analyst said.
Street Consensus
Meanwhile, Melius Research analyst Ben Reitzes downgraded Oracle to ‘Hold’ from ‘Buy’ with a $160 price target on Monday, according to TheFly. Melius said that it believes the debt and equity will be an overhang for some time for Oracle, adding that the company should be valued more like an infrastructure company versus a software company.
Bernstein also lowered its price target on Oracle to $313 from $339 and kept an ‘Outperform’ rating on the shares, citing the uncertainty around how the company will fund the AI datacenter build-out to meet the contracts it signed last year.
DA Davidson upgraded Oracle to ‘Buy’ from ‘Neutral’ with a price target of $180 on its shares. The analyst said that it believes a revamped OpenAI will be a top challenger to Google and said that the fresh capital stack will help the company live up to its obligations this year, including to Oracle, which it sees removing the biggest concern from the latter.
Retail Stance
On Stocktwits, retail sentiment around ORCL shares remained in the ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes.
One bullish user shared their research on some hyperscalers. The user said that while Oracle is the most financially challenged among the lot, the company also has the biggest backlog and the biggest upside potential. The user also noted that OpenAI's successful IPO would be key to Oracle’s success.
Another bullish user said that Oracle’s shares were rising at a faster rate compared to its decline, indicating a solid upside.
Shares of ORCL have declined more than 8% over the past year.
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