Oracle(US:ORCL) Zhi Tong Cai Jing·2025-11-27 03:05Core Viewpoint - Deutsche Bank suggests that the market's bearish sentiment towards Oracle (ORCL.US) may actually signal a bullish opportunity, despite investor concerns over high expenditures and their impact on financial health [1][2] Group 1: Financial Projections - Deutsche Bank analyst Brad Zelnick indicates that if Oracle's projections for fiscal year 2030 exclude any revenue and expenses from OpenAI, the earnings per share (EPS) could decrease by $4 to $17, and free cash flow (FCF) could drop by $10 billion to $31 billion [1] - Discounting these figures to present value suggests that Oracle's current stock price of approximately $200 does not reflect any valuation premium from its relationship with OpenAI [1] Group 2: Analyst Ratings and Concerns - Deutsche Bank maintains a "Buy" rating on Oracle with a target price of $375, acknowledging investor concerns regarding lease liabilities but suggesting these liabilities may possess significant flexibility [1] - If lease liabilities become a burden, EPS could fall to around $15, and FCF could decrease to about $26 billion [1] Group 3: Market Sentiment and Growth Potential - The current stock price corresponds to a 27x price-to-earnings ratio based on the consensus EPS for the 2026 calendar year, which is impacted by upfront costs associated with expanding AI business [2] - Despite recognizing financial and operational risks, the analyst believes these risks are outweighed by substantial opportunities, as OpenAI's business backlog represents reliable investment returns, confirming Oracle's leadership in large-scale AI cloud infrastructure deployment [2]