Oracle price target lowered to $175 from $205 at BMO Capital

BMO Capital lowered the firm’s price target on Oracle (ORCL) to $175 from $205 and keeps a Market Perform rating on the shares after its Q3 earnings miss and below-consensus guidance. The firm notes that it has previously written that FY26 margins would move lower based on higher depreciation, and thus considers the comments around FY26 margins more as a clearing event, even though the ramp of FY27 margins remains a question, the analyst tells investors in a research note. BMO maintains that Oracle’s longer-term trajectory is “good” as it continues to believe that the company’s ability to reaccelerate growth is ultimately what will drive the shares from current levels.