Oracle (ORCL) Could Surge Higher as Analysts Highlight Major AI Growth Potential

Core Viewpoint - Oracle Corporation is highlighted as a significant AI stock, with Deutsche Bank maintaining a Buy rating and a price target of $375, indicating confidence in Oracle's long-term AI growth potential [1][3] Financial Performance - Oracle shares are currently trading at 27 times the consensus CY26 EPS, reflecting the initial costs associated with scaling its AI business, which may limit investor appetite for growth until more tangible results are observed [1] Market Opportunity - Deutsche Bank believes that the risks associated with Oracle are mitigated by the opportunities presented by OpenAI, which validates Oracle's leadership in AI cloud infrastructure [2] - The recent pullback in Oracle's stock price is viewed as an attractive entry point for investors, suggesting a favorable risk/reward scenario [3] Investment Outlook - The firm reiterates its Buy rating and a discounted cash flow (DCF) derived target price of $375, which implies approximately 38 times the estimated non-GAAP EPS for CY27 [3] - While Oracle is recognized as a potential investment, there are opinions that other AI stocks may offer greater upside potential with less downside risk [4]