Palantir Technologies Inc (NASDAQ:PLTR), which has seen a notable rise in its stock price over the past two months, is now facing a downturn in Friday pre-market trading.
What Happened: Palantir Technologies Inc (NASDAQ:PLTR) saw a significant rise of over 78% in the last two months. However, data from Benzinga Pro showed that on Friday the stock fell by 3.62% during pre-market trading.
This decline follows the initiation of coverage by UBS analyst Karl Kierstead, who gave Palantir a neutral rating on Dec. 18. Kierstead expressed optimism about Palantir's fundamentals but highlighted concerns over its valuation. "Our review of Palantir's fundamentals left us very positive. In our view, Palantir deserves a material multiple premium to most/all other public software firms," he said, reported Investor's Business Daily.
"The main thing keeping us on the sidelines is valuation, which at 49 times revenue and 124 times free cash flow on 2025 estimates is simply tough to get over."
Why It Matters: Palantir has a consensus price target of $34.13 based on the ratings of 21 analysts, tracked by Benzinga Pro. The three most recent analyst ratings were released by Benchmark, UBS, and Mizuho set an average price target of $44 with an implied 39.04% downside for Palantir.
Palantir on Thursday announced an extension of its partnership with the U.S. Army, which is expected to enhance its data and AI capabilities. The agreement, valued at $400.7 million over four years, has a potential ceiling of $618.9 million. This partnership aims to operationalize data across the Department of the Army, enabling broader integration of data and AI capabilities.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。