Morgan Stanley Maintains Equal-Weight Rating and $210 Price Target for Oracle
Oracle delivered strong Q1 fiscal 2027 results, with cloud infrastructure revenue rising by 121% year over year to $7.4 billion due in part to the AI boom. Total revenue reached $19.3 billion and remaining performance obligations hit a record $664 billion. Despite these positive operational metrics, Oracle's stock has underperformed significantly this year, down nearly 50%. Morgan Stanley reviewed these results and maintained its Equal-weight rating with an unchanged price target of $210 per share. The firm highlighted Oracle’s impressive execution in expanding cloud capacity across multiple locations without impacting fiscal guidance. Additionally, the company completed a large equity offering that removed a potential overhang on shares. However, Morgan Stanley noted concerns around gross margin compression due to heavy upfront investments in GPU infrastructure.
Topics: AI Growth Cloud Infrastructure Earnings Report Morgan Stanley Oracle