Palantir slips as Raymond James downgrades after recent run up
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3 months ago
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- Palantir Technologies (NYSE:PLTR) shares slipped 1.2% in premarket trading on Monday after Raymond James downgraded the enterprise software company, citing the recent gains in the stock.
- “While we remain enthusiastic about Palantir’s longer term positioning in AI, we are downgrading our rating to Market Perform from Outperform given our view that shares need to consolidate stellar gains over the last couple of years and grow into its rich valuation,” analyst Brian Gesuale wrote in an investor note.
- Palantir is currently trading at 21.9 times estimated 2026 sales and 26.1 times estimated 2025 sales, compared to the historical average of 14.9 times. Additionally, Palantir is a candidate for Rule 40 regression, which implies the stock trading at 10.5 times estimated 2025 sales, Gesuale added. “We believe the AI scarcity value and accelerating fundamentals justify a premium to our implied multiple, though the revenue growth + profit would need [to exceed more than] 100 from its current level of 58.”
- Analysts are largely cautious on Palantir (PLTR). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a HOLD. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates LYFT a HOLD.