On Thursday, Oracle Corporation (NYSE:ORCL) received an upgrade from a Hold to a Buy rating by a research analyst at Argus, with a new price target of $145.00. The upgrade comes following Oracle's management's optimistic outlook on revenue growth, projecting acceleration into fiscal year 2025.
The company recently reported a 16% increase in non-GAAP earnings per share alongside a 7% growth in revenue for the fiscal period. In response to these results, the analyst has revised the fiscal year 2024 EPS estimate for Oracle to $5.61, up from the previous $5.59. Additionally, the forecast for fiscal year 2024 has been increased to $6.18 from $6.03.
The revised estimates by the analyst suggest an average EPS growth of 10% over the next two years for Oracle. This growth is underpinned by a long-term earnings growth rate forecast of 8% for the company. Oracle's management has also confirmed its target to achieve $65 billion in revenue by fiscal year 2026, which would equate to a compound annual growth rate (CAGR) of 6% from fiscal year 2023.
The positive adjustment in Oracle's stock rating and price target reflects the analyst's confidence in the company's financial trajectory and strategic plans as outlined by its management. Oracle's reaffirmed revenue targets and anticipated EPS growth are key factors influencing the analyst's upgraded outlook.
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