Oracle is trading at a deep discount to its peers despite its strong fundamentals, making it due for a big bounce in the near future, according to Mizuho. The bank reiterated its outperform rating on Oracle. It also repeated its $320 price target on shares, which implies 164% upside from Monday’s close. “ORCL shares, trading at multi-year lows, reflects one of the most attractive risk/reward profiles in our coverage,” analyst Siti Panigrahi said Tuesday in a note to clients. “Shares trade … [at a discount] to every comparable infrastructure peer despite above-peer growth, even as execution strengthens across capacity conversion, [remaining performance obligation] quality, and financing visibility.” ORCL YTD mountain Shares are down 38% in 2026. Oracle currently trades at 14 times its 2027 non-GAAP earnings, making it cheaper than its peers, according to the analyst. Shares have plunged roughly 38% year to date as the company’s rising debt and credit downgrades have led investors to rotate out of the stock. However, there are several near and mid-term catalysts that could drive more value to Oracle, including “continued capacity monetization through [fiscal years 2027 and 2028], a fading financing overhang … early applications reacceleration” and a wave of potential credit re-ratings, per Mizuho. The bank’s call falls in line with consensus on the Street. Of the 44 analysts that cover Oracle, 35 have a buy or strong buy rating on the stock, LSEG data shows.
