Goldman Sachs has lowered its price target for Oracle Corporation (ORCL) from $240 to $220, according to a recent report. The investment bank cites several reasons for the downgrade, including slower-than-expected growth in the company’s cloud infrastructure business and increased competition in the enterprise software market.

Despite the lower price target, Goldman Sachs remains bullish on Oracle’s long-term prospects, citing the company’s strong position in the cloud computing market and its expanding portfolio of cloud-based services. However, the investment bank notes that the company faces significant challenges in the near term, including increased competition from newer, more agile players in the market.

Oracle’s stock price has been under pressure in recent months, falling from a high of around $270 in February to a low of around $180 in June. The company’s revenue and earnings have also been impacted by the ongoing COVID-19 pandemic, which has led to increased caution among corporate customers and reduced spending on technology infrastructure.

In response to these challenges, Oracle has been focusing on expanding its cloud offerings and improving its customer engagement strategies. The company has also been investing heavily in emerging technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT).

Goldman Sachs’ lower price target for Oracle reflects the investment bank’s view that the company’s growth prospects will be muted in the near term, but remains positive on the company’s long-term outlook. The investment bank notes that Oracle has a strong track record of innovation and has been successful in expanding its cloud offerings and improving its customer engagement strategies.