Wall Street predicts Oracle stock price for the next 12 months

Core Viewpoint - Oracle's stock price experienced a decline following the release of its second-quarter earnings, despite beating expectations, due to weaker guidance and increased spending on AI infrastructure. However, some analysts remain optimistic about the stock's potential for recovery over the next year [1][2][3]. Financial Performance - Oracle reported adjusted earnings of $2.26 per share, exceeding Wall Street estimates, primarily due to a $2.7 billion sale of its Ampere stake [2]. - Revenue increased by 14% year-over-year to $16.06 billion, although it fell short of forecasts [2]. - The company raised its full-year capital expenditure outlook to $50 billion, mainly for AI-optimized data centers and cloud infrastructure [3]. Analyst Ratings and Price Targets - A total of 35 analysts have assigned a 'Moderate Buy' rating to Oracle, with 23 recommending 'Buy', 11 suggesting 'Hold', and one advising 'Sell' [4]. - The average 12-month price target is $298.43, indicating a potential upside of 57.09% from the last closing price, with the highest target at $400 and the lowest at $172 [4]. - Mizuho maintained an 'Outperform' rating with a $400 price target, citing that short-term concerns do not affect Oracle's long-term growth outlook [6]. - Scotiabank reduced its price target from $360 to $260 while keeping a 'Sector Outperform' rating, noting limited near-term earnings growth but maintaining a positive long-term view due to Oracle's scale and strategic advantages [7].