Mon Jun 30 12:40:00 UTC 2025: **Summary:**

A Stifel analyst, Brad Reback, upgraded Oracle (ORCL) stock from “Hold” to “Buy,” significantly raising the price target from $180 to $250. The upgrade is fueled by optimism about Oracle’s cloud business momentum. Reback believes increased capital expenditure and RPO gains support strong cloud growth expectations, which will accelerate overall revenue growth. While the high capex might initially impact gross margins, Reback is confident in Oracle’s expense management and shift towards infrastructure-based business generation. This will lead to revenue growth outpacing operating expenses. He projects accelerating EPS growth beyond fiscal year 2027 due to cloud growth and expense discipline. The upgrade moves against the existing Moderate Buy consensus, with most analysts believing the stock is currently fully valued.

**News Article:**

**Oracle Stock Soars as Stifel Upgrades to “Buy” on Cloud Optimism**

**NEW YORK, NY** – Oracle (ORCL) shares are gaining momentum today after Stifel analyst Brad Reback issued a significant upgrade, moving the stock from “Hold” to “Buy” and setting a new price target of $250, a roughly 19% increase from current levels. The upgrade comes on the heels of Oracle’s strong fourth-quarter earnings report and a growing belief in the company’s cloud business potential.

Reback, a highly-rated analyst at Stifel, cited increased capital expenditure and robust remaining performance obligations (RPO) gains as key indicators of the company’s cloud infrastructure and SaaS-apps growth. He projects that this cloud strength will accelerate Oracle’s overall revenue growth, from a projected 16% in fiscal year 2026 to approximately 20% in fiscal year 2027.

“There is no question this management team is extremely adept at managing expenses,” Reback stated in his research note. He believes Oracle’s efficient expense management, coupled with a strategic shift towards infrastructure-driven growth, will allow revenue to significantly outpace operating expenses in the coming years, despite short-term margin pressures from the increased capital expenditure.

The analyst also noted Oracle’s disciplined approach to headcount growth, with only a 2% increase in fiscal year 2025 alongside an 8% increase in total revenue. Reback expects sustainable cloud growth and operating expense discipline to drive accelerating earnings per share (EPS) growth from fiscal year 2027 onwards.

Prior to Stifel’s upgrade, Oracle held a “Moderate Buy” consensus rating on Wall Street, with an average price target of $212.14, suggesting the stock was considered fully valued. This latest upgrade from Stifel, however, signals a growing conviction in Oracle’s future growth prospects, primarily fueled by its burgeoning cloud business. Oracle stock has already rallied over 26% year-to-date.

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