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Bernstein Bullish on Oracle: AI Data Centers to Drive Growth
30 Mar
Summary
- Bernstein reiterates Outperform rating with a $319 price target on Oracle.
- Oracle's stock has fallen 50% in six months but is considered undervalued.
- Oracle is expected to benefit from AI in both its data center and core business.
Bernstein SocGen Group has reiterated an Outperform rating on Oracle, establishing a price target of $319.00. The firm cited solid third-quarter results and guidance as factors addressing investor concerns, though questions persist regarding datacenter buildout value and customer concentration.
Despite its stock trading significantly below its 52-week high, down approximately 50% over the past six months, Oracle is assessed as undervalued by InvestingPro analysis. Its P/E ratio of 25 and PEG ratio of 0.8 suggest attractive valuation relative to growth prospects.
Bernstein highlighted that Oracle's business economics are stronger than anticipated, attracting considerable investor interest. The firm believes Oracle is well-positioned to capitalize on the AI trend, with both its AI datacenter business and core database offerings expected to benefit.
In recent developments, Veritone Inc. has agreed to migrate its AI solutions to Oracle Cloud Infrastructure. Oracle has also enhanced its Simphony Cloud Point of Sale system with Smart Assistant capabilities. BofA Securities and JMP Securities have also initiated or maintained positive ratings on Oracle, underscoring confidence in its AI and cloud infrastructure growth potential.
