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Oracle: Still one of the most attractive large caps

  • Writer: Abacus Research
    Abacus Research
  • Jul 7
  • 1 min read

Oracle is entering a new phase of AI driven growth after a decade of low-single-digit revenue expansion. Plus there is a data layer investment cycle that started a few quarters ago as evidenced by Snowflake's results. The two 'updates' that ORCL gave in June 2025 were very bullish for the business.


  • We initially wrote up ORCL in Nov 2023, we think the success of OCI has now been cemented in place, it is just a question of execution and end market demand, which remains > supply.

  • We expect ORCL to deliver between ~20% and 27% EPS CAGR for the next 4 years.

  • We think ORCL will earn ~$15.50 in 2029 under a success scenario

  • Although the stock has seen some multiple expansion, we believe this likely ‘success’ is not fully appreciated by the market.


Potential Upside:     $400 (+70%) over 3 years

Sensible Downside: $180(-24%)

Harsh Downside:     $140



 
 
 

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