From 24/7 Wall St. · Vandita Jadeja · · 50s
Oracle Stock Could Jump 50%
Oracle shares may rise 50% to $225 if cloud growth continues.
In brief
Oracle shares may rise 50% to $225 if cloud growth continues. Oracle's stock could reach $225 from current $148.84 with 51.2% gain if cloud contracts convert and GPU utilization stays high. Originally reported by 24/7 Wall St..
Oracle's Cloud Growth
Oracle reported 121% cloud growth year over year and $664 billion backlog.
“Cloud infrastructure grew 121% year over year last quarter”
Stock Price Tension
Shares sit near yearly low at $148.84 after 49.25% drop from $293.27.
“Shares are off 0.96% on the week and down 49.25% over the past year”
Analyst Targets
Consensus target is $237.97 with 82% of analysts bullish on Oracle stock.
“The average analyst target sits at $237.97, with 8 strong buys, 28 buys, 7 holds, and 1 sell”
Model's 47% Upside
Our model predicts $216.99, a 47% gain from current $148.84.
“Base case is $216.99, an upside of 47%, with a bull case of $332.66 and a bear case of $182.81”
Path to $225
Reaching $225 requires 51.2% gain from $148.84 with 18x forward P/E.
“Reaching $225 from today’s price of $148.84 would require a gain of 51.2%”
Key Conditions
RPO conversion, GPU utilization at 97.9%, and FY2028 EPS of $10.99 must hold.
“RPO has to keep converting on schedule, with management already targeting half within 36 months”
What it means
Oracle's stock could reach $225 from current $148.84 with 51.2% gain if cloud contracts convert and GPU utilization stays high.
