Oracle’s stock has been in the spotlight lately after Cantor Fitzgerald raised its price target from $216 to $271, citing strong performance and optimistic growth projections. Over the past year, Oracle’s shares have surged by 75% trading close to their 52-week high of $241.44. This upward trend is mainly driven by the growing strength of its cloud business especially Oracle Cloud Infrastructure (OCI) and Cloud Database Services (CDBS).
Cantor Fitzgerald’s latest research shows significant momentum in Oracle’s multicloud services. The firm believes that fiscal year 2025 growth for multicloud CDBS exceeded 500% though it currently contributes less than 0.5% of total revenue. Even so, this sharp growth rate is a promising sign. Cantor also forecasts a strong acceleration in core OCI revenues from 56% to 85% by fiscal 2026, which is well above market expectations.
Currently, Oracle is trading at a P/E ratio of 53.85x, which is higher than the average. InvestingPro data suggests the stock may be trading above its fair value. While this could signal overvaluation, Cantor justifies the premium valuation by pointing to ongoing strength in OCI. The AI-driven demand and the possibility of future earnings upgrades.
Other firms agree with this strong view: Evercore ISI, Piper Sandler, and Bernstein have also raised their price targets highlighting Oracle’s massive $30 billion annual contract and the positive long-term impact of its AI and multicloud strategies. These upgrades show growing confidence in Oracle’s future especially as it shifts more toward enterprise and AI solutions.
Despite these positives, Investing Authority’s AI analysis did not rank Oracle among the top undervalued opportunities. This suggests that while Oracle is growing and expanding its cloud and AI offerings, the current stock price may reflect most of that potential. Oracle is showing strong business momentum and expanding cloud growth. But investors should consider whether the current price fully reflects future gains or if they are buying in at a premium.
