Analysts say Oracle may need to raise money soon

Oracle (ORCL) is an provider of solutions based on a group of crescents that touch the database, intermediate programs, cloud infrastructure, infrastructure as a service, and programs as a service.

Oracle has increased by 41 % YTD after mobilizing nearly 90 % in the past three months. The arrow easily outperforms the standard S&P 500 index ($ SPX), which gained less than 6 % YTD. The Oracle shares also increased by 62 % in the time frame for 52 weeks while trading its highest level ever.

Barclays Keith Pashman analyst issued a memo to customers who warn of Oracle liquidity. The analyst set the “Outperform” for the technology giant, with a price of $ 245, indicating a rise of 5 % of the current market level.

Despite its classification and target price, Bachman is concerned about the future Oracle needs in the future. The analyst pointed out the increasing expenses of the company, as well as the cash that it needs for stock profits and to purchase the planned shares. He believes that Oracle may need to collect capital in the following years, probably from 2026 or 2027.

Bakhmann expects Oracle to boost the increase in artificial intelligence expenditures (AI), which, along with its high -value debt, indicates the company’s need for approximately $ 20 billion over the next two years.

The analyst warns that although the situation that can be controlled at the present time, many capital raising events may hinder its profits. Bachman expects that the free cash flow of Oracle may prevent a negative billion dollars in the 26 and 100 million dollars in the 27th fiscal year, much less than the unanimity estimates of $ 213 billion and 1.957 billion dollars, respectively.

Bakhanman says that the company may look forward to raising $ 10 billion in the fiscal year 26 and 10 billion dollars in the 27th fiscal year. This translates into a cost of $ 0.14 per share.

The latest financial report for Oracle came on June 11, when the company published its results in the fourth fiscal quarter, showing a profit of $ 3.43 billion or $ 1.70 per average share. The number exceeded analysts $ 1.64 per share. Quarter revenues amounted to 15.9 billion dollars again, winning the estimate of Wall Street, at a value of $ 15.54 billion.

The cloud services sector and the company’s license support contributed 11.7 billion dollars, an increase of 14 %, while the cloud infrastructure revenues (OCI) increased by 52 % to 3 billion dollars, reflecting the increased demand for artificial intelligence solutions and multiple solutions.