Shares of Palantir Technologies (PLTR) are falling on Thursday after Mones Crespi Hart & Company analyst Brian White downgraded the stock from “neutral” to “sell.” White also lowered his price target to $20, citing “inflated” valuations fueled by the AI boom, saying he believes “the darkest days of this economic downturn are ahead.”
Yahoo Finance josh lipton and Akiko Fujita Break down the details.
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Editor’s note: This article was written by angel smith
video transcript
Akiko Fujita: Well, it’s time for today’s call. Palantir’s stock price stalled after one analyst argued that the company’s valuation was overvalued and gave the company a sell rating. Brian White, formerly of Monne, Crespi and Hurd, downgraded the stock from neutral and set a 12-month price target of $20, saying the company’s meteoric rise due to the AI boom needs a reality check. Ta.
Josh, I should point out that this is not a negative thing about Palantir. That’s why valuations are rising. And if we really consider the current state of this memo, based on our estimates, Palantir has the highest valuation in the enterprise software group, while also claiming the top spot in overall coverage. Masu. Yes, the outlook is still bright. But at such a price level, it’s not necessarily a good entry point.
Josh Lipton: Yeah. And I think, as analysts say, after the meteoric rise on the GenAI rocket, Akiko has returned to reality. That’s what he writes. And, listen, the stock is up about 30% this year. It has increased approximately 190% over the past 12 months. So it’s understandable that some financial analysts are a little nervous about valuations. Longer term, he told his client, Palantir still believes that by leveraging certain unstable geopolitics he is well-positioned to benefit from the AI train. he thinks. However, in the near future he will have doubts and will move on to selling.
Akiko Fujita: Well, AI trade is still largely intact.
