Shares of Oracle ( ORCL ) closed more than 10% higher on Feb. 9 after DA Davidson senior analyst Gil Luria issued a constructive note in favor of the legacy technology company. As investors cheered the bullish call, ORCL edged closer to its 20-day moving average (MA) which currently sits around $172. A break above this “key resistance” can add to the short-term bullish momentum.

Despite today’s rise, Oracle shares are still down 23% from their year-to-date high.

Austin-based Oracle Corp is building multibillion-dollar data centers for OpenAI. It has been sold in recent months over fears the cash-hungry ChatGPT company won’t be able to pay its bills, leaving Oracle with billions in debt and empty buildings.

But recent reports suggest that OpenAI is raising up to $100 billion. According to Luria, this new pile of capital confirms that the artificial intelligence (AI) giant is stable enough to pay Oracle everything it owes in 2026.

This makes ORCL shares worth buying at current levels and holding for the long term, he added.

Luria also recommends investing in Oracle shares because they are essentially on sale right now.

According to analyst DA Davidson, the market has become so “pessimistic” that it is treating the OpenAI partnership as a liability rather than an asset.

However, at 23 times forward earnings, you essentially get the company’s massive cloud business for free, as the current valuation only covers its legacy software business, he told clients.

Additionally, Luria believes that the idea that AI or “vibration coding” will replace Oracle’s offerings is overblown, and its notable customers will continue to pay for its professional tools.

Today he upgraded Oracle to “Buy” with a price target of $180, indicating a potential upside of more than 15% from here.

It’s also worth mentioning that DA Davidson is actually among the most conservative companies in ORCL stock.

According to Barchart, Oracle’s consensus rating is at “Moderate Buy,” with an average target of about $295 indicating potential for an exciting 90% upside over the next 12 months.

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As of the date of publication, Wajeeh Khan had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com