Scotiabank Lowers Oracle (ORCL) Price Objective, Sees Strength in AI-Accelerated Cloud

Oracle Corporation (NYSE:ORCL) is included among the 14 Best American Dividend Stocks to Invest in.

On March 9, Scotiabank lowered its price recommendation on Oracle Corporation (NYSE:ORCL) to $215 from $220. The firm reiterated an Outperform rating on the shares. The analyst said the firm likes Oracle’s “tidy” fourth-place position in the AI-accelerated cloud market. It also believes the company’s traditional businesses remain well insulated from “vibe-coded” competition.

On March 10, Reuters reported that Oracle predicted the boom in AI data centers would push its revenue above Wall Street estimates well into 2027. The outlook sent the company’s shares up 8% in extended trading. The results helped ease investor concerns that Oracle’s multi-billion-dollar push into AI computing might take longer to generate profits. Remaining performance obligations (RPO), a key measure of future contracted revenue, rose 325% from a year earlier to $553 billion. That figure came in ahead of the $540.37 billion estimate from four Visible Alpha analysts.

The company said most of the increase in RPO during the quarter is tied to large-scale AI contracts. Oracle added that it “does not expect to have to raise any incremental funds” related to these deals. Oracle also raised its revenue forecast for fiscal 2027 to $90 billion. That outlook is above analyst estimates of $86.6 billion, according to data compiled by LSEG.

Oracle Corporation (NYSE:ORCL) provides integrated suites of applications along with secure, autonomous infrastructure through Oracle Cloud. The company operates through three businesses: cloud and license, hardware, and service.

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