DA Davidson Slashes Oracle (ORCL) PT to $200 After Revealing Single Customer, OpenAI, Drove RPO Increase

2 days ago 4

Maham Fatima

Fri, November 28, 2025 astatine 10:57 AM CST 2 min read

Oracle Corporation (NYSE:ORCL) is 1 of the most promising stocks with immense upside potential. On November 25, DA Davidson lowered the firm’s terms people connected Oracle to $200 from $300 with a Neutral standing connected the shares. The steadfast noted that erstwhile Oracle reported net for FQ1 2026, the institution initially suggested that the summation successful Remaining Performance Obligations/RPO was driven by respective customers. However, the pursuing day, it was revealed that astir the full RPO summation was attributable to a azygous customer: OpenAI.

Although the $300 cardinal committedness was OpenAI’s largest astatine the time, making Oracle look to person won a important deal, the steadfast argues that OpenAI’s consequent announcement of implicit a trillion dollars successful commitments showed that it was not a superior counterpart and had efficaciously utilized Oracle arsenic a pawn successful a expansive strategy of self-promotion.

DA Davidson Slashes Oracle (ORCL) PT to $200 After Revealing Single Customer, OpenAI, Drove RPO Increase

In the company’s FQ1 2026 net report, Oracle disclosed that it made $14.9 cardinal successful full revenue, which was an 11% summation from the erstwhile year. This show was propelled by monolithic AI demand, starring to a immense acceleration successful Oracle’s backlog. RPO reached an all-time precocious of $455 billion, which marked a immense 359% summation year-over-year. The institution is aggressively pursuing the adjacent larger AI inferencing market, utilizing its presumption arsenic the largest custodian of high-value backstage endeavor data.

Oracle Corporation (NYSE:ORCL) offers products and services that code endeavor accusation exertion environments worldwide.

While we admit the imaginable of ORCL arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.