Analyst sets Oracle stock price target

Core Viewpoint - Oracle's stock is gaining attention with a 2.3% increase in pre-market trading, following an upgrade to 'Buy' by Oppenheimer analyst Brian Schwartz, who set a price target of $185, indicating over 25% upside potential from the last close of approximately $146 [1][2]. Group 1: Stock Performance and Analyst Insights - The stock's valuation multiples have decreased by more than 50% since September, making the risk-reward profile more attractive despite the early nature of the call [2][3]. - Oracle's shares have experienced a significant decline of roughly 25% in 2026, attributed to investor concerns regarding the company's heavy investments in AI and cloud infrastructure [4]. - Oppenheimer's analysis suggests that Oracle is a "strong EPS compounder," projecting pro-forma earnings per share (EPS) to grow at a 20% compound annual growth rate (CAGR) through fiscal 2023, reaching $12.66, with a bull-case scenario estimating EPS growth at around 30% annually to $17.79 [5]. Group 2: Factors Supporting Optimism - Several factors contribute to the positive outlook, including reduced counterparty, financing, and execution risks due to recent capital-raising efforts and significant customer acquisitions like OpenAI [6]. - Despite the optimism, there are acknowledged concerns regarding balance sheet strain, margin pressure from AI investments, elevated counterparty risk, and the substantial financing needed for Oracle's infrastructure expansion [6].