Why Oppenheimer Says Oracle Stock Can Gain 25% from Here

Oracle (ORCL) stock's performance has been ordinary, with a downside of 10% in the last 52 weeks. While valuations seem attractive, the markets have been concerned about AI investments, the impact on the balance sheet, and cash flows. 

However, even after discounting these concerns, Oppenheimer has upgraded ORCL stock to “Outperform” from “Perform” with a price target of $185. The bullish thesis is backed by the view that Oracle is likely to be a strong EPS compounder. Even after a 25% haircut to management’s guidance, Oracle’s EPS is likely to double by 2030. Further, with Oracle announcing a $40 billion to $50 billion equity and debt financing program for 2026, the financing and execution risk is likely to decline.