Oracle stock climbed more than 16% this week after the company won an $88 million cloud contract with the U.S. Air Force. The contract requires Oracle to deliver Oracle Cloud Infrastructure services to Cloud One and supports DoD cloud modernization efforts.
Oracle‘s services will support the U.S. Department of Defense’s cloud modernization efforts. Analysts boosted forecasts, and the stock traded near $157 at press time.
DA Davidson analyst Gil Luria maintained a $180 price target and commented on recent market moves. “In the past, we had been very critical of Oracle and OpenAI, but believe the market is now more appropriately reflecting the risks involved, especially in this relationship.” “Considering Oracle’s move from $345 intraday Sept. 11 to the current $143 and subsequent moves down in Nvidia and Microsoft tied to OpenAI concerns, we believe the market has overshot to the downside.”
Both Guggenheim and Jefferies set $400 price targets, signaling strong confidence in Oracle’s outlook. Guggenheim highlights strategic positioning, financial discipline and long-term growth versus peers like Palantir and Microsoft.
The Air Force contract and analyst moves helped lift shares this week. (Ed. note: Analysts previously raised concerns about Oracle’s ties to OpenAI, which affected recent price swings.)
