UBS Stays Bullish on Oracle (ORCL) Despite Target Cut, Sees 2026 Recovery Path

Core Viewpoint - Oracle Corporation is currently viewed as a potential investment opportunity, particularly due to its connection with OpenAI and the ramp-up of its Abilene data center capacity, despite recent declines in stock price and investor confidence [1][3][4]. Group 1: Stock Performance and Analyst Ratings - UBS has reiterated a "Buy" rating for Oracle, lowering its price target from $325 to $280 per share, indicating cautious optimism regarding the stock's recovery potential [1]. - Oracle's stock has experienced a 41% correction from its mid-September highs, reflecting deteriorating investor confidence in both Oracle's outlook and OpenAI's prospects [1][2]. Group 2: Future Growth Potential - Analysts believe that Oracle's revenue growth is expected to improve as the new Abilene data center capacity ramps up and the sentiment surrounding OpenAI begins to shift positively [3]. - The anticipated reversal in OpenAI sentiment is viewed as a positive catalyst for Oracle in the first half of 2026 [3][4]. Group 3: Market Context - Concerns related to OpenAI have negatively impacted the entire "OpenAI complex of stocks," which includes Oracle and other technology companies linked to the AI organization [2].