Oracle (NYSE:ORCL) stock is in the news Tuesday as UBS analyst Karl Keirstead makes a bull case for the information technology company’s shares.
Starting off this coverage of ORCL stock is a price target increase from $120 per share to $140 per share. That represents a potential 19.8% upside for the stock over the next 12 months. It’s also above the analysts’ consensus price prediction of $120.24 per share.
In addition to that, the UBS analyst also upgraded shares of ORCL stock from a “neutral” rating to a “buy” rating. For the record, the analysts’ consensus rating for ORCL shares is “moderate buy” based on 21 opinions.
Why the Bull Stance on ORCL Stock?
Here’s what Keirstead had to say about Oracle’s potential in a note to clients obtained by CNBC:
“We believe GPU supply constraints could be enough to drive outsized performance in Oracle shares. Oracle is benefiting from outsized allocations of Nvidia GPUs relative to its size. We could be sitting in front of 6-12 months of GPU shortage noise and we haven’t even seen the $2b in AI start-up commitments convert to OCI usage.”
Investors will note that ORCL stock is up 1.7% as of Tuesday morning. It’s also worth keeping in mind that the company’s stock is up 41.8% since the start of the year. Even with that rise, the UBS analyst believes there could be more gains for ORCL stock.
Investors seeking out even more of the most recent stock market news for Tuesday are in the right place!
InvestorPlace is offering up insight into all of the biggest stock market stories worth reading about today! That includes why shares of Catalent (NYSE:CTLT) stock, Yellow Corp (OTCMKTS:YELLQ) stock, and Nio (NYSE:NIO) stock are in the news today. All of that info is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.