Credit Suisse analyst Brad Zelnick downgraded Palantir (PLTR) to Underperform from Neutral with a price target of $17, up from $13.
The stock's valuation is "disconnected from fundamentals," trading over 50% above a "previous blue sky scenario," Zelnick tells investors in a research note. With the stock trading at 46 times enterprise value to 2021 revenue, the risk/reward is "skewed to the downside," says the analyst.
Zelnick believes the current valuation "ignores a number of risks," including heightened large deal scrutiny and founder control.
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