Citigroup Forecasts More Than Double Upside for AI‑Focused Oracle Stock
Citigroup expects Oracle’s shares to more than double in the near future. The bank rates the stock a buy with a $330 price target, implying about 130% upside from Tuesday’s close. Analyst Tyler Radke notes that the recent extreme price decline resulted from investor capitulation and technical factors such as credit spread widening and at‑the‑market issuance. He says robust AI demand and margin‑enhancing price pressures from cloud providers will drive positive earnings revisions before the upcoming earnings release and investor day in late October. Oracle’s stock has dropped roughly 25% over the past three months due to concerns about mounting debt and credit downgrades, causing it to lag large‑cap technology peers that have risen about 10% on average. The slowdown reflects waning momentum in the AI trade and skepticism about hyperscalers’ heavy infrastructure spending. Citigroup believes the stock is poised to rebound as structural headwinds ease. Radke adds that expectations have been reset, with signs of capitulation and forced selling now behind the company, likely after a completed at‑the‑market equity offering, and that improving bond and credit‑default‑swap spreads support the outlook. The call aligns with the Wall Street consensus, where 34 of 44 analysts rate Oracle a buy or strong buy, according to LSEG data.
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