On Tuesday, October 20, Bank of America (NYSE: BAC) reviewed its outlook for Oracle (NYSE: ORCL) and seemingly came to the exact same conclusion as in early June – that the stock is set for a major rally.
Specifically, BofA analyst Tal Liani published a note rating ORCL shares as a ‘Buy’ and estimating they will soar 80.83% from their press time price of $132.72 to $240 within the next 12 months.
Notably, the Wall Street expert first made this forecast early in June when Oracle stock was changing hands at roughly $206 and only started the descent that took it, by press time on October 20, 35.51% lower.
At the time, BofA cited the technology giant’s $50 billion equity and debt raises as factors reducing concerns regarding the firm’s data center buildout, as well as the broader software sector strength.
In July, Oracle’s credit rating was downgraded to BBB– – one step above ‘junk’ – and the most recent developments threaten to degrade it even further. Additionally, the company issued a force majeure notice for its New Mexico data center in late September, though Oracle claimed the decision represents a relatively commonplace move and is unremarkable.
Such notices are usually issued to protect firms in case of massive disruption, such as wars or natural calamities.
Wall Street sets Oracle stock price for the next 12 months
Elsewhere, despite appearing exceedingly bullish given the recent developments, BofA’s latest Oracle stock price target is slightly below the Wall Street average.
Indeed, ORCL shares are, overall, considered a ‘Strong Buy’ and boast twenty-seven positive, four ‘Hold’, and one ‘Sell’ recommendation, per the data Finbold retrieved from TipRanks on Tuesday, October 20.
The average price target is likewise bullish and estimates that ORCL equity will soar 87.68% to $249.11 in the next 12 months.
Still, October revisions were generally more conservative. Out of the three provided since the month started, only BofA opted for a ‘Buy’ recommendation, while RBC Capital’s Matthew Hedberg and Dan Ives – perhaps the biggest technology bull on Wall Street – rated the shares as ‘Neutral’.
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