J.P. Morgan believes Oracle Corp. stock is still a good bet as the company continues to expand its cloud business. In a note shared with clients earlier this week, analyst Mark Murphy kept its Buy rating on Oracle while setting a $93 per share target price.
According to Murphy, “Oracle’s view is that there is a long way to go in a growing [cloud computing] market.” The company also saw success in attracting a number of big-name clients, including social media platform TikTok, video-call giant Zoom, and Uber.
Murphy also liked that Oracle increased the number of external customers on Oracle Cloud. Compared to less than 50 percent in 2019, external customers now account for almost 70 percent. Additionally, Oracle is in the process of building eight new data centers to complement the 41 it already has.
Analysts have been optimistic about Oracle stock across the board. The consensus rating was Moderate Buy, while the target price settled at $97.19. There were some analysts with a more bullish outlook than this, with Cowen & Co. setting a $100.00 target price.
Oracle stock closed at $88.01 per share on Friday. This represents moderate growth in the past week and a 5 percent jump year-to-date.