Morgan Stanley: Oracle's Financing Path Becomes Clearer, Maintains $210 Price Target

TechFlow news, according toTechFlow Research, Morgan Stanley's October 29, 2026 research report noted that Oracle expects the remaining construction of about 6 GW to correspond to about $220 billion in capital expenditure needs. Supplier financing, customer-supplied hardware, and prepayments can reduce upfront cash pressure, and the company expects to need an additional $20 billion in financing. Management expects free cash flow to turn positive in the second half of fiscal 2028.

Morgan Stanley maintains an Equal-weight rating and a $210 price target, saying the funding and return framework is clearer, with the key follow-up being on-time capacity delivery and margin preservation. Oracle targets about 10 GW of capacity by the end of fiscal 2028; construction pace will affect revenue realization and cash flow improvement, while expense leverage and financing mix will also affect expansion quality.

Source: TechFlow