Palantir climbs on inaugural day of trading after S&P 500 inclusion

Erie Indemnity

23/09/2024 18:34

(Updates stock activity, changes headline, recasts)
    ** Shares of Palantir Technologies  PLTR.N  reverse early
losses and last up 2.1% at $37.98 on Mon after data analytics
firm begins trading on the S&P 500 index  .SPX 
    ** PLTR joins S&P 500 Information Technology sector
 .SPLRCT  within the benchmark index
    ** SPX edges higher on Mon after Fed policymakers defend
rate cuts, while SPLRCT dips 0.2%  .N 
    ** Earlier Mon, Raymond James downgraded PLTR to "market
perform" on elevated valuation
    ** Brokerage said remains enthusiastic about co's longer
term positioning in artificial intelligence (AI), but added
shares "need to consolidate stellar gains over the last couple
of years and grow into its rich valuation"
    ** Valuation has expanded roughly fivefold since co launched
AIP in May 2023, with stock now trading at 26.1x brokerage's
2025E sales vs historical average of 14.9x, Raymond James said
    ** Raymond James pointed to stock's 23% gain over past two
weeks since S&P 500 inclusion announcement, saying this leaves
"significant positive estimate revisions as the lone catalyst
from here"
    ** With move on Mon, PLTR has risen 11 of past 12 sessions
and up ~120% in 2024. Stock ended 2022 at $6.42
    ** Avg rating among 19 brokerages covering PLTR is "hold",
per LSEG, with median PT of $28 up from $23.50 on Jun 23

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))