Mizuho Reiterates Outperform on Oracle (ORCL) with $350 Target Despite AI Margin Concerns

Core Viewpoint - Oracle Corporation is currently viewed as a significant player in the AI stock market, with analysts maintaining a positive outlook despite recent share price declines attributed to concerns over AI margins [1][3]. Group 1: Analyst Ratings and Price Target - Mizuho analyst Siti Panigrahi has reiterated an Outperform rating for Oracle with a price target of $350.00 [1]. - The stock experienced a decline of approximately 6% in intra-day trading, contrasting with the QQQ index, which was down about 60 basis points [3]. Group 2: Market Reactions and Insights - The article from "The Information" raised concerns about AI margins, but analysts believe it provided minimal new information beyond existing discussions [2][3]. - Analysts assert that certain quotes from the article support the view that Oracle's profit margins will improve as the company scales, reinforcing a gross margin assumption of 25% [3]. Group 3: Future Catalysts - The upcoming AI World/Financial Analyst Day on October 16 is viewed as a major catalyst for Oracle, where the company is expected to clarify ongoing debates regarding its performance and strategy [3].