Bank of America Says Oracle Stock Can Gain More Than 30% from Here. Why?

On March 24, Tal Liani of Bank of America Securities (BofA) assigned a price target of $200 to Oracle's (ORCL) stock, reinstating coverage with a “Buy” rating. That'd put it about 35% higher than its current price. He cited large revenue potential from AI demand as the primary reason for his bullish stance. Oracle is part of a consortium of companies, including OpenAI and SoftBank (SFTBY), that will develop America’s next-generation AI infrastructure as part of Project Stargate.

The company is a beneficiary of the massive AI buildout, and its stock price has fallen low enough for it to be worth investing in. But there’s the other side of the picture, which BofA has also pointed out in its note to investors. One issue is the timing of the company’s backlog. While the backlog is worth $553 billion, more than half of it is beyond the three-year mark. Moreover, a big chunk of this backlog is from OpenAI, which itself is part of Project Stargate.