Wedbush has initiated coverage on Oracle (NYSE:ORCL) with an Outperform rating and a $225 12‑month price target.
Oracle, the database and enterprise software group, is pitches by the broker as a foundational infrastructure provider for large‑scale AI workloads as it retools its cloud and data stack.
Wedbush points to Oracle Cloud Infrastructure’s flatter network architecture and the company’s “AI for Data” strategy, anchored by Oracle AI Database 26ai, as the technical differentiators.
Remaining Performance Obligations have swollen to $553 billion, producing a capex‑to‑RPO ratio of roughly 9.0%, versus a peer group average of about 45.6%, the broker's initiation notes.
Multi‑cloud database revenue climbed 531% year‑on‑year in FY3Q26, a metric the report uses to argue Oracle is embedding its technologies across competitor ecosystems.
Oracle is executing a $45–$50 billion capital plan and has already raised $30 billion through investment‑grade bonds and mandatory convertible preferred stock to fund the expansion.
The conventional downside, heavy capex and negative free cash flow, is framed in the report as a backward‑looking view that underestimates contracted demand.
Partnerships with OpenAI and NVIDIA and projects such as Stargate are cited as supporting the pathway from backlog to revenue, and the report sets a $225 12‑month price target.
