Oracle is the focus as Jefferies and Guggenheim raise their price expectations before the Q2 report. Oracle stock investors will generate $14.12 billion in revenue,
Research firms Guggenheim and Jefferies raised their price targets for Oracle (NYSE:ORCL) on Thursday in anticipation of the IT giant’s fiscal second-quarter results, which are scheduled to be announced following the close of trading on December 9.
In premarket trade, shares increased by 0.6%.
“We expect Oracle to at least meet F2Q25 expectations and guide F3Q25 in line,” wrote John DiFucci of Guggenheim in a letter to clients. “Our field checks indicated solid F2Q25 momentum in Oracle’s Cloud business as the company leverages its unique technology advantages across SaaS and IaaS, while pipelines for the second half of the FY are highly optimistic.”
DiFucci went on to say: “ORCL’s AI strategy of embedding incremental services within its core platform is also becoming a meaningful differentiator and is accelerating the pace of on-premise application migrations to SaaS where customers can realize those benefits.”
According to a partner, DiFucci, who reaffirmed his Buy rating and raised his price target from $200 to $220, added that Oracle Database has gained more traction through partnerships with hyperscalers, including multiple agreements with Google (GOOG) (GOOGL) Cloud and an upcoming deal with Amazon (AMZN) Web Services. This is noteworthy because the Microsoft (MSFT) Azure relationship, which went online almost a year ago, has not produced anything.
“Consensus revenue estimates generally imply reasonable New ARR growth, though IaaS requires New ARR to double, which was the case last quarter (and Oracle did better than that) but we have trust in management’s visibility,” DiFucci stated.
Brent Thill, an analyst at Jefferies, also raised his price objective from $190 to $220, citing recent checks that indicate “modest pipeline improvement.”
“[Fiscal second-quarter] expectations are elevated coming out of a bullish Sept analyst day and LT rev targets that imply a multi-year growth [acceleration],” Thill, who has Oracle’s Buy rating, wrote in a note to clients. “Continued backlog momentum & better backlog-to-[revenue] conversion are needed to keep the stock on its run.”
Analysts predict that Oracle will generate $14.12 billion in revenue and earn $1.48 per share.