11:46 AM EST, 02/25/2026 (MT Newswires) -- Oracle (ORCL) offers a "favorable" risk-reward after the stock's valuation multiples have been more than halved since September, Oppenheimer said in a note Wednesday.

The company is poised to be a "superior" earnings compounder, with analysts projecting earnings per share could nearly triple by fiscal 2030 in a bull case and more than double in a base case, even after trimming management's revenue guidance. The projected growth would place Oracle among the top large-cap companies for EPS expansion and could help improve investor sentiment toward the stock, according to the note.

Oracle's risk profile is improving "modestly" as OpenAI-related counterparty exposure eases, its recent capital raise supports its Cloud Infrastructure and forward revenue growth, and its Enterprise Resource Planning and financials applications, about 13% of revenue, remain "relatively immune" from artificial intelligence disruption, Oppenheimer said.

Investors remain concerned about pressure on Oracle's balance sheet, margin and cash flow declines from AI investments and lower-return deals, and the need for significant financing, while the company must deliver consistent forward revenue and EPS growth to prove its shift to a more capital-intensive business, the firm said.

Oppenheimer upgraded Oracle to outperform from perform, and initiated a price target of $185.

Price: 149.53, Change: +3.39, Percent Change: +2.32