Oracle stock buy coverage got a fresh vote of confidence on March 24. Bank of America analyst Tal Liani spearheaded the reinstatement with a Buy rating and a $200 price target. That implies around 30% upside from where the stock trades right now.
Oracle stock value has shed about 23% year-to-date, and the shares also sit well below the 2025 highs. Still, Liani’s thesis rests on something pretty tangible. Oracle cloud revenue growth accelerated to 84% year-over-year last quarter, and the oracle stock price target 2026 BofA outlined looks increasingly reachable from here.
Source: TipRanks
Oracle Stock Buy Momentum Rises With AI Growth and Cloud Revenue
Source: Bloomberg
A Giant Backlog — And a Big Test
The Oracle stock buy thesis starts with that $553 billion RPO figure, which jumped 325% year-over-year in Q3 FY2026. Oracle cloud revenue growth engineered that number. Cloud infrastructure alone reached $4.89 billion last quarter. Management also says AI-driven demand still outpaces available supply. Yet more than 57% of the backlog extends beyond three years.
Additionally, a significant chunk ties back to a small group of AI developers — OpenAI being the most prominent. Anyone debating oracle stock buy or sell has to weigh that concentration risk alongside the scale of the opportunity.
BofA analyst Tal Liani stated:
“Oracle has large revenue potential ahead, supported by $553bn in RPO tied to long-duration AI training and cloud infrastructure commitments. This provides solid visibility for a meaningful growth opportunity, but the company will need to demonstrate it can deliver capacity, convert long-dated contracts into revenues, and manage a capital-intensive buildout.”
Capital Costs and the Long Wait Ahead
Oracle’s capex trajectory accelerates toward $50 billion in FY26 and keeps climbing through FY29. Free cash flow stays negative across that entire stretch, and also the company needs continued access to external financing. That reality has kept some pressure on Oracle stock value through 2026. It also explains why the oracle stock buy or sell debate hasn’t quite gone away. Meanwhile, Liani’s answer to that optimizes around a straightforward principle. Heavy early-stage spending follows the same pattern in disruptive infrastructure cycles. The real performance opportunity emerges after the investment phase, not during it.
BofA noted:
“Front-loaded investments are typical during disruptive innovation cycles and we therefore focus on performance beyond the investment cycle.”
BofA also projects revenue growth of 17% in FY26, 33% in FY27, and 46% in FY28. Oracle Cloud Infrastructure capacity expansion and oracle cloud revenue growth picking up speed as more data centers go live drive that forecast. Moreover, the bank pencils in around 1,200 basis points of gross margin compression alongside that growth.
Oracle Stock: Buy or Sell — Where Wall Street Stands
Wall Street’s verdict on the Oracle stock buy question leans heavily in one direction. ORCL carries a Strong Buy consensus from 27 Buy calls, 4 Holds, and also zero Sell recommendations right now. The average oracle stock price target 2026 stands at $245.11, translating to over 64% upside from current levels.
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At the time of writing, BofA’s $200 call is actually the most conservative target on the Street. The high-end forecast reaches $400. For anyone still asking oracle stock buy or sell, the analyst community has already delivered a pretty clear answer.