Oracle shares have fallen 54% over the past year on concerns about the large debt taken on to build AI data centers. The median 12-month Wall Street price target of $240 implies an 84% gain from current levels, and 36 of 45 analysts (80%) rate the stock a buy. Oracle reported a backlog of $664 billion in fiscal Q1 2027 (ended Aug. 31), with cloud infrastructure revenue up 121%. The company expects fiscal 2027 revenue to rise 34% to at least $90 billion, while analysts expect 46% growth to $131.8 billion in fiscal 2028. The article argues that at 5 times sales, below the five-year average of 6.6 times, a rerating to 7 times sales by the end of fiscal 2028 would put market cap near $923 billion, 133% above the current level.
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