D.A. Davidson cuts Oracle PT amid scrutiny over AI build-out, debt load

Shares of Oracle ORCL.N down 1.3% at $197.74 in premarket trading

D.A. Davidson cuts ORCL's PT to $200 from $300, saying company's increase in remaining performance obligations is entirely driven by OpenAI

Brokerage sees ORCL debt default as unlikely, but says rising insurance costs signal the market believes company borrowed too much for a customer whose demand may not materialize

Company may need to scale back its build-out, write off some land and power contracts and reduce debt - brokerage

32 of 45 brokerages rate the stock "buy" or higher, 12 "hold" and 1 "sell"; median PT is $360 - data compiled by LSEG

Up to last close, shares up 20.12% YTD