TLDR
- Mizuho Securities named Oracle its No. 1 Top Pick for October, setting a $320 price target.
- Oracle’s AI cloud demand has driven $638 billion in remaining performance obligations.
- Six other companies joined the list: UnitedHealth Group, EyePoint Pharmaceuticals, Wyndham Hotels & Resorts, Establishment Labs, Air Liquide, and Brixmor Property Group.
- Mizuho flagged risks for Oracle, including a planned $45 billion to $50 billion raise and thinner AI cloud margins.
- The Top Picks list now includes 25 stocks across seven sectors.
Mizuho Securities has updated its Top Picks list for October 2026. Oracle took the top spot on the list.
The firm set a $320 price target for Oracle. That is about 25% above the Bloomberg consensus estimate.
Oracle’s stock traded around $144.77 when the report came out. Mizuho analyst Siti Panigrahi pointed to growing demand for the company’s AI cloud services.
Oracle’s Growth Numbers Draw Attention
Oracle reported $638 billion in remaining performance obligations as of its fiscal fourth quarter. That figure represents contracted business that has not yet turned into revenue.
Mizuho forecasts 35% annual revenue growth for Oracle between fiscal 2026 and 2030. The firm expects revenue to reach $226 billion by fiscal 2030.
Oracle’s fiscal 2026 revenue was $67.4 billion. That means Mizuho expects more than a threefold increase over four years.
Mizuho also named two risks for Oracle. The company will likely need outside financing to pay for its expansion plans.
Oracle has already announced plans to raise $45 billion to $50 billion through a combination of equity and debt. Mizuho also noted that Oracle’s AI cloud business carries lower gross margins than its traditional software business.
Oracle will hold an investor day on October 28. That event could offer more details on financing and long-term profit plans.
Six Other Companies Make the List
UnitedHealth Group also joined the list this month. Mizuho set a $493 price target against a current price of $376.32.
The health insurer’s stock has fallen 7.3% since September 1. During that same stretch, the S&P 500 rose 1.5%.
Mizuho pointed to upcoming Medicare Advantage star ratings and third-quarter earnings as factors to watch. The 2026 midterm elections were also named as a potential catalyst.
EyePoint Pharmaceuticals received a $39 price target from Mizuho. The stock currently trades around $3.17.
Shares of EyePoint dropped roughly 80% after a late-stage trial of its drug Duravyu missed its main goal in wet AMD patients. Mizuho expects results from a second trial in late October.
Wyndham Hotels & Resorts got a $108 price target, compared to a current price of $72.65. Mizuho expects the company’s room growth and fee income to improve.
Establishment Labs received a $105 target against a price of $65.29. Mizuho cited the ongoing U.S. launch of its Motiva breast implants, with third-quarter results expected around November 5.
Air Liquide was given a target of 200 euros, compared to its current price of 169.10 euros. Mizuho pointed to a record electronics backlog of 2.4 billion euros and an October 5 investor day.
Brixmor Property Group received a $30 target against a current price of $27.46. Mizuho cited the company’s self-funded redevelopment projects and a pending $2.34 billion grocery-center acquisition.
The full Top Picks list now holds 25 stocks spread across seven sectors. Mizuho said the list should not be treated as a single portfolio.
Instead, each pick reflects an individual analyst’s top idea in their coverage area. Mizuho disclosed it expects investment banking compensation from Oracle and Vaxcyte in the coming months, and received similar compensation from Oracle over the past year.
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