Oracle Stock Upgraded by Oppenheimer After Significant Selloff
Oracle shares received an upgrade from Oppenheimer & Co, which raised its rating to 'Outperform' and set a new price target of $185. This comes after Oracle's stock had fallen significantly since its peak in September, with the price sliding by about 25% year-to-date.
The recent decline in Oracle's stock has been linked to slower growth in its cloud business and higher spending to expand its artificial intelligence infrastructure. Despite these challenges, Oppenheimer believes the current valuation presents a buying opportunity, describing Oracle as a strong growth company available at a cheaper price.
Following the upgrade, Oracle shares rose by 2.3% in pre-market trading.
Oppenheimer upgraded Oracle because they believe the drop in its stock price has made it attractively valued, even with recent challenges.
Oracle's stock declined due to slower growth in cloud revenue and increased spending on expanding its AI infrastructure.
Oppenheimer set a new price target for Oracle at $185 per share.
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