Oracle (ORCL) stock is on track to close about 7% higher on March 11 after the legacy tech name said artificial intelligence (AI) tailwinds helped it come in handily above Street estimates in its Q3. The company ended the third quarter with an exciting $553 billion in remaining performance obligations (RPOs), offering exceptional visibility into future revenue.
And while the stock failed to breach a key resistance, coinciding with its 50-day moving average (MA), Wall Street analysts remain convinced that it will more than double from here over the next 12 months.
Versus their year-to-date low in early February, Oracle shares are now up about 20%.
Where Options Data Suggests Oracle Stock Is Headed
According to Barchart, options traders seem to share analysts’ optimism on ORCL stock as well.
The put-to-call ratio on long-term contracts expiring mid-December sits at 0.78x currently, signaling bullish skew. Meanwhile, the upper price on these contracts at about $214 suggests potential upside of another 33% from here.
After raising $30 billion last month, Oracle’s management confirmed on the earnings call that the company won’t issue any more bonds in 2026 helping alleviate concerns related to interest expense and credit risk.
Meanwhile, a 1.24% dividend yield makes Oracle even more attractive to own for income-focused investors.
Why Are Analysts Keeping Bullish on ORCL Shares
Wall Street analysts recommend buying Oracle shares into the post-earnings strength given that the NYSE-listed firm saw its AI-focused cloud infrastructure (OCI) business grow an incredible 84% in Q3.
Analysts point to 32% gross margin on artificial intelligence capacity — exceeding company benchmarks — as proof that ORCL can scale profitably.
According to analysts, the massive $29 billion quarterly increase in RPO offers remarkable visibility, while the decision to maintain capex guidance at $50 billion signals efficient execution.
At about 25x forward earnings, Oracle is a bargain for a business clearly riding the AI wave, they told clients in research notes dated March 11.
What’s the Consensus Rating on Oracle?
Street’s bullish view is evidenced in its price targets on Oracle for the next 12 months.
The consensus rating on ORCL shares remains at “Strong Buy,” with price targets as high as $400 indicating potential upside of a whopping 150% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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