On Friday, UBS analyst Karl Keirstead issued an update on Oracle (NYSE: NYSE:ORCL) shares, raising the company's price target from $175.00 to $200.00 while maintaining a Buy rating on the stock.
This adjustment follows Keirstead's attendance at Oracle's CloudWorld event in Las Vegas, where he engaged with customers and partners, conducted a session with industry checks, and participated in the Investor Day.
During the event, positive feedback was received about Oracle's top-line growth. The company announced an increase in its revenue target for fiscal year 2026 and provided an ambitious growth guide of 16% for the FY26-FY29 period.
However, Oracle also relayed that the goal for a 45% operating margin (OM) has been delayed from FY26 to FY29. This change reflects the significant investment and near-term margin impact associated with developing new GPU infrastructure.
Despite the deferral of the operating margin target, UBS's outlook on Oracle remains optimistic. Keirstead highlighted the company's strong revenue growth projections as a key factor in maintaining the Buy rating. The analyst's remarks suggest that the investments Oracle is making today are expected to yield substantial growth in the coming years.
UBS is planning to host a recap call to discuss insights and takeaways from Oracle's CloudWorld event. Interested parties are invited to join the call scheduled for 11:00 am ET on Friday, September 13th. The call will likely provide further details on Oracle's financial targets and the firm's rationale for the raised price target.
Oracle shares may potentially react to the new price target and growth guidance provided by UBS. Investors and market observers will be watching closely to see how Oracle's strategic investments in GPU infrastructure and cloud services will influence its financial performance in the near future.
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