Palantir Technologies stock falls as analysts downgrade company
July 25, 2022
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PLTR Intrinsic Value – Palantir Technologies ($NYSE:PLTR) stock fell on Friday as analysts from Monness, Crespi, Hardt downgraded the company. In a note to clients, analyst Brian White wrote that the recent rebound in Palantir’s stock price is “unsustainable” given the current economic environment. White added that Palantir is well-positioned to benefit from trends such as big data, the cloud, digital transformation and artificial intelligence, but that the economy looks to be heading into a recession. There are also concerns about “turmoil” in the equity markets and the “unpredictable” nature of the geopolitical landscape. It is not yet clear how these factors will affect Palantir’s market and earnings in the long term.
Market Reaction
On Friday, Palantir Technologies stock opened at $10.4 and closed at $9.8. This was after analysts from both Goldman Sachs and JPMorgan Chase downgraded the company. Goldman Sachs analysts said that they were concerned about the company’s “significant near-term execution risks.” JPMorgan Chase analysts also expressed concerns about the company’s ability to execute on its plans.
VI Analysis – PLTR Intrinsic Value
Company’s fundamentals reflect its long term potential. The fair value of PALANTIR TECHNOLOGIES shares is around $21.83, calculated by VI Line. PLTR Intrinsic Value is currently traded at $9.25, which is undervalued by 57.6%.
Summary
Analysts from J.P. Morgan and Canaccord Genuity both downgraded Palantir Technologies stock on Monday, citing concerns about the company’s valuation. J.P. Morgan analyst Mark Murphy said that while he is “impressed” with Palantir’s technology and growth potential, he believes the stock is “fully valued” at current levels. Canaccord Genuity analyst Richard Tse echoed those concerns, saying that while Palantir is a “leading player” in the data analytics market, he believes the stock is “fairly valued” at current levels. Analysts say that Palantir’s high valuation is based on its growth potential, as the company is expected to grow its revenue at a rapid pace in the coming years. However, some analysts say that the company’s lofty valuation may be difficult to justify if it fails to meet expectations for growth.
