Oracle’s ‘Cash Flow Waterfall’ Is Coming – Analysts Say Market Is Missing the Obvious

Oracle Corp. is being left behind by a market that simply doesn’t do the math right, according to one of Wall Street’s most bullish voices on the stock.

Senior Managing Director and Software Analyst at Guggenheim Securities John DiFucci appeared on Yahoo Finance Monday to make his case, calling Oracle “severely undervalued” and reiterating his $400 price target — the highest on the Street, according to Benzinga data.

DiFucci’s argument relies on a level of forward visibility that he says is rare.

Oracle has disclosed more about its future contracts and commitments than virtually any other software company he covers, he said, and the market still hasn’t priced that in.

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The company’s remaining performance obligations (RPO) were $553 billion in the third quarter, up 325% year-over-year.

This is not a pipeline. This is a contractually agreed backlog.

The focus of his thesis is OpenAI. DiFucci estimates that the ChatGPT maker could ultimately account for nearly 30% of Oracle’s total revenue -…