Palantir Technologies shares slip after Deutsche Bank downgrade

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Palantir Technologies ($NYSE:PLTR) shares slipped on Tuesday after investment firm Deutsche Bank downgraded the data analytics software company after it issued second-quarter results. Analyst Brad Zelnick cited concerns about a slowdown in Palantir’s government business and moved his rating on the company’s shares to sell from hold. Zelnick noted that Palantir does not have much going right at the current moment and put an $8 price target on the stock. “While we’ve always been more skeptical of Palantir’s commercial opportunity, our thesis was rooted in what we saw as a uniquely strong position in Public Sector,” Zelnick wrote in a note to clients. It is unclear how this downgrade will affect Palantir Technologies in the long term, but it could potentially lead to a decline in the company’s market share and earnings.

Market Reaction

After the news release, media sentiment was mostly negative.

VI Analysis

The company’s fundamentals reflect its long term potential. The below analysis on PALANTIR TECHNOLOGIES is made simple by the VI app. The VI Star Chart shows that PALANTIR TECHNOLOGIES has an intermediate health score of 6/10 with regard to its cashflows and debt. The company might be able to pay off its debt and fund future operations. PALANTIR TECHNOLOGIES is classified as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster. PALANTIR TECHNOLOGIES is strong in assets, growth, and weak in dividend, profitability.

Summary

This was likely due to the negative news that the downgrade brought. Despite this, Palantir Technologies remains a strong company with a bright future. Many investors believe that the company is well-positioned to capitalize on the growing trend of big data and analytics.