Credit Suisse Downgrades 'Disconnected From Fundamentals' Palantir To Sell

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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