Palantir dips as Raymond James downgrades on 'rich' valuation

Erie Indemnity

23/09/2024 14:04

** Shares of Palantir Technologies  PLTR.N  down 1.3% at
$36.72 premarket after Raymond James downgrades data analytics
firm to "market perform" from "outperform", citing elevated
valuation
    ** Brokerage says remains enthusiastic about co's longer
term positioning in artificial intelligence (AI), but 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 says
    ** Raymond James points 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"
    ** Palantir joins the S&P 500  .SPX  effective today along
with Dell Technologies  DELL.N  and casualty insurer Erie
Indemnity  ERIE.O 
    ** 5 of 19 brokerages covering PLTR rate stock "strong buy"
or "buy", 8 have "hold" and 6 rate "sell" or "strong sell", per
LSEG
    ** Median PT of $28 up from $23.50 on Jun 23
    ** Through Fri close, stock up ~117% YTD. Stock ended 2022
at $6.42

 (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))