Citi Adjusts Oracle Price Target to $375 Amid Valuation Caution, Holds Buy Rating on Strong Bookings Outlook

Citi has lowered its price target for Oracle Corporation (ORCL) to $375 from a previous level, citing elevated valuation metrics that now limit upside potential in the near term. Despite the reduction, the firm continues to maintain a Buy rating, highlighting underlying confidence in Oracle's business momentum, particularly in enterprise software and cloud services. The adjustment comes after a series of strong quarterly results and a recent earnings report that demonstrated resilience in contract renewals and new deal activity. Key indicators point to continued strength in Oracle’s bookings performance, with management signaling sustained demand across core database, ERP, and cloud infrastructure offerings. Analysts note that bookings growth has outpaced expectations in recent quarters, suggesting underlying demand remains firm despite macroeconomic headwinds. This trend is seen as a critical indicator of future revenue visibility and long-term growth potential. The revised $375 price target reflects a more conservative assessment of Oracle’s near-term valuation multiples, especially when compared to peers in the enterprise software segment. However, the Buy rating suggests that Citi believes the current share price already incorporates much of the valuation risk, with significant upside still possible if bookings and cloud adoption continue to expand. Investors and traders are closely monitoring Oracle’s trajectory, as the stock’s performance may influence broader sentiment in the technology sector, particularly among cloud-focused equities. The combination of a lowered target and unchanged recommendation signals a strategic pivot from aggressive growth optimism toward a more balanced, fundamentals-driven outlook.