© Reuters. Palantir (PLTR) inventory is overhyped on AI says Jefferies, cuts score to promote; Shares fall
(Up to date – January 5, 2024 8:18 AM EST)
Palantir (NYSE:) inventory fell 3.4% in early Friday commerce after Jefferies analysts downgraded the score to Underperform (equal to promote).
The brand new worth goal of $13 suggests a 20% draw back threat based mostly on yesterday’s closing worth.
Whereas analysts acknowledge that Palantir “is a unique data asset with a particularly wide technology moat and a data platform that can address complex mission-critical use cases that no other vendor can,” they imagine the inventory rallied an excessive amount of, too quick.
“We are concerned that the stock has rallied to unsustainable valuation levels primarily on the back of AI euphoria (and retail trading momentum) with no monetization strategy,” analysts stated in a be aware.
Regardless of these feedback, analysts see Palantir as an organization with an AI know-how benefit in the long run, which virtually makes at the moment’s transfer a valuation name.
“We are still fundamental fans and believe that the company has potential to gain share in an underpenetrated and large TAM but believe that there is more risk than reward at current levels, even when factoring in upward estimate revisions,” analysts concluded.
Analysts added that PLTR’s income a number of stands “well above 2-year average.”
