Oracle (ORCL) shares closed more than 10% higher on Feb. 9 after senior D.A. Davidson analyst Gil Luria issued a constructive note in favor of the legacy technology company. As investors cheered the bullish call, ORCL pushed closer to its 20-day moving average (MA) that sits at about $172 currently. A break above that “key resistance” may boost upward momentum in the near term.
Despite today’s surge, Oracle stock remains down some 23% versus its year-to-date high.
Austin-headquartered Oracle Corp is building multibillion-dollar data centers for OpenAI. It has sold off in recent months on fears that the ChatGPT company — which burns through cash — won’t be able to pay its bills, leaving Oracle with billions in debt and empty buildings.
But recent reports suggest OpenAI is raising up to $100 billion. According to Luria, this fresh stack of capital confirms the artificial intelligence (AI) giant is stable enough to pay Oracle all that it owes in 2026.
This makes ORCL stock worth buying at current levels and holding for the long term, he added.
Luria also recommends investing in Oracle shares because they are essentially on sale currently.
According to the D.A. Davidson analyst, the market has become so “pessimistic” that it’s treating the OpenAI partnership as a liability rather than an asset.
However, at about 23x forward earnings, you’re basically getting the company’s massive cloud business for free, as the current valuation covers its legacy software business only, he told clients.
Moreover, Luria believes the idea that AI or “vibe coding” will replace Oracle’s offerings is overhyped and its notable clients will continue paying for its professional tools.
He upgraded Oracle today to “Buy” with a price target of $180, indicating potential upside of more than 15% from here.
It’s also worth mentioning that D.A. Davidson is actually among the more conservative firms on ORCL shares.
According to Barchart, the consensus rating on Oracle sits at a “Moderate Buy,” with the mean target of about $295 indicating potential for an exciting 90% rally over the next 12 months.
