Cantor Fitzgerald Boosts Oracle (ORCL) Target as AI Demand Fuels Cloud Business

Core Insights - Oracle Corporation is gaining attention as a significant player in the AI sector, with a notable price target increase from Cantor Fitzgerald analyst Thomas Blakey to $400.00 from $271.00, while maintaining an Overweight rating [1][2][3] - The company's cloud business is experiencing substantial growth, driven by a 359% year-over-year increase in Remaining Performance Obligations (RPO), amounting to an increase of $317 billion [1][3] - Oracle has raised its Oracle Cloud Infrastructure (OCI) estimates, with revenue guidance extending to fiscal year 2030, indicating potential upside when comparing new contracts to the FY26-30 outlook [2][3] Financial Performance - The 359% increase in RPO reflects strong demand for Oracle's AI-related contracts, which has positively impacted its OCI estimates and revenue guidance [1][3] - The stock is expected to trade based on long-term AI growth potential, with a price target of $400 representing approximately 10.5x F28E EV/R, a slight premium to recent multiples [2][3] Market Position - Oracle is well-positioned to benefit from secular growth trends in AI training and inferencing, which supports the optimistic outlook for its stock performance [3]