Bank of America Merrill Lynch raises Oracle's target price to $240, reiterates "buy" rating.

Bank of America Securities released a report stating that since the announcement of Oracle's third-quarter performance, the stock has risen by over 30%, and has increased by over 45% since the bank resumed coverage in March. This is mainly due to the stronger overall software market and the recent alleviation of financial pressure after a $50 billion debt and equity financing. Prior to the latest earnings announcement, the bank expected the key areas of market focus to be: data center construction and revenue recognition speed, capital expenditure and financing needs related to data center construction, and the continued strength of core business. The bank reiterated its "buy" rating on Oracle and raised its target price from $200 to $240, based on the bank's earnings per share estimate for the fiscal year 2027 ending in May of 26.5 times, as the potential demand trend for cloud infrastructure and database workloads remains strong.