Jefferies analyst Brent Thill downgrades $Palantir (PLTR.US)$ to a sell rating, and maintains the target price at $28.
According to TipRanks data, the analyst has a success rate of 51.8% and a total average return of 1.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Palantir (PLTR.US)$'s main analysts recently are as follows:
The firm acknowledged having previously undervalued the substantial progress Palantir is expected to make in 2024 through the application of its foundational technological strengths in data integration and ontology creation to address bespoke AI software challenges among enterprise clients. However, the firm's neutral position is informed by the belief that the market has already factored in considerable accomplishments with the company's AIP, and further analysis is required to gauge the long-term sustainability of Palantir's competitive edge.
It's noted that Palantir's current valuation is steep, with the stock trading at a multiple of 38 times the projected revenue for 2025, positioning it as the priciest within the software sector. Additionally, there is an uptick in insider stock disposals through prearranged trading plans. While the company's core business remains robust, achieving the necessary growth rate of 40% annually over the next four years to merely maintain the stock price, and reaching a future revenue multiple of 12 times by 2028, is considered improbable.
The firm acknowledges that Palantir demonstrated a strong performance in Q3, deserving of a premium valuation. However, it is emphasized that valuation should still hold significance.
Note:
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