Mizuho: Oracle Stock Could Surge 164% After 38% Drop

Mizuho reiterated its Outperform rating on Oracle (ORCL) with a $320 price target, implying a 164% rise from Monday's close. The call comes after Oracle shares fell 38% in 2026, making it one of the most punished stocks this year.

Rating Change

Mizuho kept its Outperform rating unchanged with a $320 price target. The target represents a significant premium over the previous close, indicating analyst confidence in a recovery.

Analyst Rationale

The Mizuho analyst believes the sharp decline in Oracle's stock is overdone and that the company's strong fundamentals support a higher valuation. The report did not specify reasons for the drop but argued the market overlooked Oracle's cloud business strengths and institutional customer base.

Context

Oracle shares have fallen 38% year-to-date in 2026, pressured by broad market headwinds and concerns over tech spending slowdown. Other analysts have mixed ratings, but Mizuho's target remains among the highest.

What to Make of It

Mizuho's call reflects a contrarian view that may not be shared by the market currently. Investors should watch Oracle's upcoming quarterly results to assess whether the current decline is a buying opportunity or a value trap.