Piper Sandler has downgraded Oracle's stock from Overweight to Neutral as of April 23, 2025. This decision accompanies a dramatic reduction in Oracle's price target, which was cut from $190 to $130, signaling a cautious stance from the financial services firm.
The downgrade stems from Piper Sandler's concerns over potential pressures on Oracle's margins and risks associated with the company's ability to generate free cash flow. These issues raise flags about Oracle's future profitability and its capacity to maintain robust cash generation. According to Insider Monkey, these factors have prompted the sharp reduction in the firm's price expectations for Oracle.
This downgrade aligns with a broader trend of careful analyst sentiment regarding Oracle. Earlier in the year, various other financial analysts had already decreased their price targets for the company, albeit not as significantly as Piper Sandler's latest adjustment. The ongoing reassessment of Oracle's financial prospects by analysts underscores the importance of addressing these identified risks.