Investing Insights: Analyst Downgrades Palantir Stock with 50% Decline Predicted

Thursday, 7 November 2024, 13:26

Finance news reveals a Wall Street analyst downgrading Palantir's stock. Investing concerns arise with forecasts indicating a potential 50% drop in PLTR stock. Analysis sheds light on underlying factors and market reactions.
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Investing Insights: Analyst Downgrades Palantir Stock with 50% Decline Predicted

Palantir Stock Downgraded by Jefferies

Palantir’s (NYSE: PLTR) stock surge could be short-lived, as investment banking giant Jefferies downgraded the stock from Hold to Underperform on November 7. Analyst Brent Thill cautioned that Palantir might struggle to meet growth expectations tied to its current valuation.

Growth Expectations and Valuation Concerns

Thill maintained a price target of $28 for PLTR, reflecting a potential 50% drop from the current price. He indicated that for Palantir to justify its high revenue multiple, it needs to achieve a 40% annual revenue growth for the next four years.

  • Analyst concerns heightened by insider sales.
  • Mizuho analyst maintains a Sell rating with a target of $37.
  • Wedbush analyst raised target from $45 to $57, citing AI demand.

As analysts voice caution, PLTR's recent RSI reading of 80.53 suggests a potential pullback ahead.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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