By Ghazal Ahmed
Publication Date: 2025-12-24 07:59:00
Oracle Corporation (NYSE:ORCL) is one of the AI stocks are making waves on Wall Street. As of December 17, Citizens maintained its “Market Outperform” rating on the stock with a price target of $342.00. The company remains confident in Oracle’s cloud business model, contract economics and financing structure, despite ongoing concerns about debt.
Citizens highlighted the rising cost of insuring Oracle debt and general investor confusion about the OCI business model. While the media has focused on these debt signals as a measure of business risk, the company believes the reality is far more complex.
Citizens believes that Oracle’s long-term contracts are very valuable and the company continues to be able to finance projects efficiently.
“We believe the NPV of Oracle’s take-or-pay contracts remains very positive (assuming they are similar to CRWV) and the ability to match project finance debt to the underlying contract term at 80% loans to…