JP Morgan raised Oracle's rating to "Overweight" and lowered the target price to $210

JP Morgan released a report, upgrading Oracle (ORCL.US) from "Neutral" to "Overweight," with a target price reduced from $230 to $210. This adjustment is based on Oracle's stock price dropping 55% since mid-September, significantly lowering valuation risks; investors' expectations have shifted from blind faith to widespread pessimism, questioning the achievement of fiscal year 2030 targets, OpenAI's expansion, and debt financing capabilities; last month, the company successfully raised $25 billion in debt, and there is no significant demand for bond issuance in 2026, which may alleviate some potentially exaggerated concerns about debt ratings; gradually accumulating evidence shows the company has the ability to accelerate revenue growth.

However, the bank pointed out that the rating upgrade is not based on the achievability of long-term financial goals, which require revenue to exhibit hockey stick growth, a growth model that may or may not be realized