Oracle: Analysts' praise continues to drive stock price higher

Oracle's shares are currently experiencing a sustained upward trend after the company reported strong results for the first quarter of its fiscal year last week. Particularly, the impressive performance of the cloud infrastructure business in the age of Artificial Intelligence (AI) has convinced both analysts and investors. In light of the strong quarterly numbers and positive analyst reviews, the stock price continued to rise. Melius Research upgraded the stock from "Hold" to "Buy" and raised the price target from $155 to $210. This increase implies a potential upside of 22% for the stock. Melius especially praised the company's accelerated revenue growth and stable, solid margins. Jefferies also raised the price target for Oracle stock over the weekend, from $170 to $190, reiterating its buy recommendation. Analyst Brent Thill stated after an investor conference and conversations with Oracle partners that the company is "back on a path to success." The growth of Oracle Cloud Infrastructure and the backlog are particularly accelerating. With its strengths in database management and a cloud infrastructure renowned for its security, Oracle appears to be excellently positioned for the AI era. This is also evident in the rapid opening of new data centers. In the first quarter, which ended on August 31, the infrastructure business grew by 45% to $2.2 billion, while total revenue increased by 7% to $13.3 billion. Remaining performance obligations rose by 53% to $99 billion in the quarter, indicating growing demand. Adjusted earnings per share rose by 8% to $1.39, suggesting expanding margins. The company remains optimistic about the future of AI and its cloud infrastructure business. Given this momentum, the stock appears to have further potential.