UBS: Oracle Corporation: Positive View of CFO Appointment
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UBS maintains a Buy rating on Oracle Corporation (ORCL.N) with a target price of $250, responding positively to the company's announcement appointing Hilary Maxson as its new Chief Financial Officer. Maxson joins from Schneider Electric, a $45 billion revenue organization with over 160,000 employees, where she served as CFO for more than six years. She will replace Doug Kehring, who held the interim role—titled Principal Financial Officer—for approximately seven months and is now transitioning to an operational position.
Oracle characterized the leadership change as a planned transition. UBS views the appointment favorably, noting that Schneider Electric is highly regarded for its positioning in SaaS trends and technological advancement. The firm believes Maxson's expertise will be particularly valuable, given that Oracle's communication regarding its AI financing, debt strategy, and corresponding margin and EPS impacts has been less than ideal.
Oracle indicated that there are no changes to its debt financing plans or medium-term guidance, and UBS does not anticipate significant strategic shifts in the near term. Following a solid third-quarter earnings report and recent workforce reductions that enhance non-GAAP EPS visibility, Oracle's current valuation appears attractive. The stock trades at roughly 21 times calendar 2026 and 18 times calendar 2027 non-GAAP EPS estimates, underpinned by accelerating revenue growth and AI exposure.