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

** Shares of Oracle ORCL 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