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Oracle (NYSE:ORCL) held a small analyst day meeting in Seattle to discuss its OCI product strategy, which resulted in positive commentary from Wall Street analysts on Friday.
TD Cowen maintained an Outperform rating and $100 per share price target on the stock, telling investors there’s a “new cloud platform player in town.”
“Market awareness is growing, adoption is accelerating & we believe OCI remains a compelling new growth driver for ORCL that is opening up lots of new TAM,” wrote the analysts.
JPMorgan analysts said, “we like what we see” when referring to Oracle’s OCI strategy.
“Oracle showed a chart indicating that the mix of non-Oracle workloads on OCI has increased from 45% in 2019 to 68% today. This is a surprising disclosure, as our assumption has been that a majority of OCI workloads would be Oracle-centric. It conveys a larger TAM for Oracle to pursue, and seems to be supported by other disclosed non-Oracle-workload customer wins such as Zoom Video, 8×8, TikTok, and UBER,” said the analysts, who have an Overweight rating and $93 price target on Oracle shares.
Guggenheim kept a Buy rating and $115 price target on Oracle shares, with analysts there stating the presentations and Q&A at the event gave them more confidence.
“While there doesn’t seem to be a single silver bullet, there may be hundreds of them, as Oracle has built upon the successes and shortfalls of those that came before it while infusing decades of technology innovation that is the core of this company,” the analysts wrote.
Finally, Bernstein analysts kept the firm’s Outperform rating and $109 price target on Oracle, describing it as an “unusual investment opportunity.”
The analysts said there are two reasons Oracle OCI Gen 2 should win. These are the fact that “Oracle does not need to take customers from AWS, Azure, or GCP” and that the company has “developed unique capabilities” that make it “better positioned to win certain workloads.”
