Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks Analysts Are Watching. On February 2, UBS analyst Karl Keirstead lowered the price target on the stock to $250.00 (from $280.00) while maintaining a Buy rating. The firm sees ORCL’s recent funding clarity as a potential catalyst despite equity dilution concerns.
“Right ahead of a planned debt issuance, Oracle press-released some incremental disclosures about its funding needs in 2026, required to finance the build-out of AI infrastructure.”
Oracle recently announced that it will raise an estimated $45 billion to $50 billion in calendar 2026 through a combination of stock sales and debt. This move, the company said, reflects on its commitment to maintain an investment-grade rating amid the AI spending.
In particular, the company has outlined plans for a debt raise of only $20-25 billion coupled with an equity raise of up to $20 billion. The firm noted how the planned debt component may be viewed positively by credit investors.
However, the equity raise portion, previously described as a last resort by the company, may not receive the same warm reception from all equity holders.
“We are Buy-rated and wonder if this long-awaited clarity may serve as a clearing event for the stock.”
Oracle Corporation is a database management and cloud services provider.
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This article is originally published at Insider Monkey.
