In a report released today, Mark Murphy from J.P. Morgan maintained a Hold rating on Oracle (ORCL – Research Report), with a price target of $135.00.

Mark Murphy’s rating is based on Oracle’s strategic positioning and its potential to capitalize on long-term opportunities. Oracle’s focus on expanding its data center footprint and increasing its capital expenditures aligns with the growing demand for AI capabilities, which is expected to outpace current supply. However, the commentary from Oracle executives did not suggest an overwhelming demand surge compared to previous assessments, indicating a balanced outlook.

Additionally, Oracle’s business model is underpinned by a significant portion of recurring revenue, which provides stability and resilience. The company’s strategic shift towards faster-growing segments like Cloud Apps and OCI, coupled with disciplined operating expenses, supports its potential for profit growth. Despite these positive factors, the risk-reward profile is considered balanced, leading to the Hold rating, as the market dynamics and competition present both opportunities and challenges.

Murphy covers the Technology sector, focusing on stocks such as Adobe, Intuit, and Oracle. According to TipRanks, Murphy has an average return of 9.1% and a 55.62% success rate on recommended stocks.

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