Jefferies lowered Oracle Corp. (ORCL) price target from $320 to $290. The firm maintained a "Buy" rating. Jefferies cited concerns about Oracle's AI data center build-out execution. Related financing challenges also contributed to the decision. Analyst Brent Thill expects these issues to persist for several quarters.
The adjustment comes as Oracle enters a seasonally soft quarter. A recent credit downgrade weighs on sentiment. High costs from AI infrastructure investments also impact sentiment. Oracle's balance sheet faces scrutiny. Its net leverage is near historical highs.
Despite the reduction, Jefferies suggests much negative news may be priced into the stock. This move follows a similar price target cut by TD Cowen earlier in the week.