Oracle (ORCL) shares soared to an all-time high on Monday after two major investment firms highlighted the company’s strong prospects in cloud computing. Jefferies analysts raised their price target for Oracle stock to $190 from $170, while Melius Research upgraded its rating to “buy” following Oracle’s CloudWorld 2024 Conference in Las Vegas.
Shares of Oracle surged 5.1%, closing at $170.33. Analysts credited Oracle’s increasing competitiveness and strong growth in its Oracle Cloud Infrastructure (OCI) as key drivers of revenue strength. Both firms emphasized Oracle’s growing backlog and highlighted CEO Larry Ellison’s successful efforts in forming strategic partnerships and building a cloud platform focused on artificial intelligence (AI).
Notably, Oracle’s partnerships with Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform are seen as crucial for sustaining Oracle’s cloud pipeline and easing margin pressure.
Oracle shares have climbed nearly 22% since its Sept. 9 earnings report, which exceeded expectations and included the announcement of a new multicloud partnership with AWS. This optimism was further boosted by Oracle’s positive revenue growth outlook for the coming years.