Investment Recommendation - The firm upgraded Oracle to a buy rating with a target price of $410 per share due to a "bookings bonanza" [1] - The upgrade is based on a bullish forecast for the next 3 to 5 years, surprising analysts [2] - The firm believes the stock is not particularly stretched, trading at a mid-30s earnings multiple on FY28 numbers, similar to Microsoft's valuation [6] Financial Performance & Projections - Oracle added $300 billion of new Remaining Performance Obligation (RPO) to the business [3] - The firm's revenue and EPS numbers for FY28 increased by 25% to 30% [4] - The firm anticipates Oracle's consolidated revenue growth will approach 50% in a few years [5] - Cloud Infrastructure (OCI) revenue is projected to reach $18 billion in 2026, $32 billion in 2027, $73 billion in 2028, and $144 billion in 2029 [7] Key Growth Drivers & Considerations - Oracle is expected to announce additional contracts and potentially close in on $500 billion of RPO [5] - The company's AI world conference in Las Vegas next month is expected to bring additional positive surprises on margins [5] - A key question is Oracle's ability to convert RPO into revenue, requiring power contracts, data center space, chips, and customer payments [9] - Oracle's customers include high-quality, well-funded companies like Meta, XAI, OpenAI, and Microsoft, reducing concerns about payment [9]