Oracle Corp. (ORCL) stocks gained nearly 4% on Tuesday after Mizuho Securities reiterated its 'Outperform' rating and maintained a $320 price target, implying nearly 164% upside from Monday's close. The affirmation came despite Oracle's sharp decline of approximately 38% year-to-date and over 48% in the past year. Mizuho attributed its bullish stance to Oracle's attractive valuation relative to infrastructure peers, noting the stock trades at 14 times its 2027 non-GAAP earnings despite above-peer growth rates. The analyst firm cited multiple catalysts including continued capacity monetization through fiscal 2027 and 2028, a fading financing overhang, early applications reacceleration, and potential credit re-ratings. Oracle shares pared some gains in afternoon trading to close up 3.4%.
Mizuho Maintains $320 Price Target at 14x 2027 Earnings Multiple
Mizuho stated in a note to clients on Tuesday that "ORCL shares, trading at multi-year lows, reflects one of the most attractive risk/reward profiles in our coverage," according to a CNBC report. The firm emphasized that Oracle trades at a discount to every comparable infrastructure peer despite above-peer growth, while execution continues to improve across capacity conversion, remaining performance obligation quality, and financing visibility. According to Mizuho, Oracle currently trades at 14 times its 2027 non-GAAP earnings, making the stock cheaper than its peers.
Oracle Faces Capacity Monetization and Credit Re-Rating Catalysts Through Fiscal 2028
Mizuho identified several near- and mid-term catalysts that could unlock value for Oracle shareholders. These include continued capacity monetization through fiscal 2027 and 2028, a fading financing overhang, early applications reacceleration, and a wave of potential credit re-ratings. The analyst firm noted that rising debt and credit downgrades had prompted investors to rotate out of the stock, contributing to the approximately 38% year-to-date decline.
Retail and Wall Street Sentiment Remains Bullish on ORCL Stocks
Retail sentiment on Stocktwits for ORCL remained 'extremely bullish,' unchanged in the past 24 hours, while message volume was 'high.' In a Stocktwits poll asking traders which of four popular data center plays—Oracle (ORCL), IREN, Bloom Energy (BE), and Hut 8 (HUT)—they were most tempted to buy, Oracle tied with IREN as the top choice, with each receiving 39% of around 3,800 votes.
Mizuho's bullish view aligns with broader Wall Street sentiment. According to Koyfin data, 37 of the 43 analysts covering ORCL rate it 'Buy' or 'Strong Buy,' while five rate it 'Hold' and one rates it 'Sell.' The 12-month average target on the stock is $248.15, representing a potential upside of around 104% from the last close. ORCL shares have fallen over 48% in the past 12 months.
FAQ
What price target did Mizuho set for Oracle stocks?
Mizuho maintained a $320 price target for Oracle (ORCL), implying nearly 164% upside from Monday's close. The firm reiterated its 'Outperform' rating on Tuesday.
Why did Oracle stocks gain nearly 4% on Tuesday?
Oracle stocks gained nearly 4% after Mizuho Securities reiterated its bullish stance, citing attractive valuation at 14 times 2027 non-GAAP earnings and multiple catalysts including capacity monetization through fiscal 2027 and 2028, a fading financing overhang, and potential credit re-ratings.
What is Wall Street's consensus rating on Oracle stocks?
According to Koyfin data, 37 of the 43 analysts covering Oracle rate it 'Buy' or 'Strong Buy,' while five rate it 'Hold' and one rates it 'Sell.' The 12-month average target on the stock is $248.15, representing around 104% upside from the last close.
