Baird Cuts Oracle (ORCL) Price Target to $315, Maintains Outperform Rating

Oracle Corporation (NYSE:ORCL) is included among the 15 Best Long-Term Stocks to Buy According to Reddit.

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On Nov. 18, Baird lowered his price target for Oracle Corporation (NYSE:ORCL) to $315 from $36⁠5, maintaining an Outperform rating on the stock, The Fly reported. The analyst noted that the company had revised its bullish thesis, but highlighted concerns around Oracle’s AI initiatives and debt levels.

In its fiscal first quarter report, Oracle Corporation (NYSE:ORCL) reported revenue of $14. billion, an increase of 1‍2⁠% year over year. The company also reported a dramatic 359% increase in its remaining performance obligations (RPO), which reached $45⁠5 billion. RP‍O represents the total value of contracts not yet fulfilled, and this large accumulation indicates that Oracle is well positioned to accelerate revenue and profit growth.

Oracle Corporation (NYSE:ORCL) has raised its fiscal 2029 revenue guidance to $185 billion, up from a previous estimate of $104 billion, and projects revenue of $225 billion in fiscal 2030. This implies a 31% annual growth rate starting in fiscal 2025. The company also expects non-GAAP earnings to grow by 28% annually, reaching $21 per person by fiscal year 2030.

Despite the good outlook, shares of Oracle Corporation (NYSE:ORCL) have fallen more than 29‌%‌ over the past month. Investor concerns center on the company’s significant $111 billion in debt and plans to raise an additional $3.8 billion to expand its artificial intelligence infrastructure. Reliance on OpenAI for revenue adds further caution, with potential funding and execution risks.

Oracle Corporation (NYSE:ORCL) provides enterprise software, cloud computing, and database management systems, helping businesses manage data, applications, and IT infrastructure.

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