Oracle's not much more expensive than it was earlier this week, says Citi's Tyler Radke

Core Viewpoint - Oracle has been upgraded to a buy with a target price of $410 per share due to unexpectedly strong bookings and a bullish forecast for the next 3 to 5 years [1][2]. Financial Performance - The recent quarter showed a significant increase in bookings, with $300 billion of new Remaining Performance Obligations (RPO) added to the business, surpassing market expectations [3]. - Revenue and EPS estimates for FY28 have increased by 25% to 30%, indicating strong future growth potential [4]. Growth Projections - Oracle's consolidated revenue growth is expected to approach 50% in the coming years, which is notable for a company of its size [5]. - The cloud infrastructure business (OCI) is projected to grow from $18 billion in 2026 to $144 billion by 2030, reflecting a dramatic ramp-up in revenue [7]. Valuation Insights - Despite the recent share price increase of nearly 40%, Oracle's valuation remains comparable to Microsoft, trading at a mid-30s earnings multiple for FY28 [6]. - The forward-looking valuation for FY26 suggests continued revenue and earnings growth acceleration as new capacity comes online [9]. Market Position and Customer Base - Oracle is expected to convert its RPO into revenue effectively, supported by high-quality customers such as Meta, XAI, OpenAI, and Microsoft, which are well-funded and reliable [9][10]. - The company anticipates additional contracts and potential profitability increases as it approaches its upcoming AI world conference [5][10].