Palantir Downgraded To Underweight From Equal Weight At Morgan Stanley

Morgan Stanley analyst Keith Weiss downgraded Palantir (PLTR) to Underweight from Equal Weight with a $17 price target.

The shares are up 155% since coming public "with very little change in the fundamental story," Weiss tells investors in a research note.

As such, the risk/reward for Palantir is now "decidedly negative" with the shares trading at 33 times estimated 2022 sales, double the average for software-as-a-service stocks, adds the analyst. Weiss sees too many outstanding questions to sustain the current valuation, including if operating expenditure cuts this year will hurt growth prospects and whether Palantir will be able to add to its base of customers.

 

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Stock Fan 1 month ago Member's comment

"...Last week, Morgan Stanley analyst Keith Weiss lowered his rating on the stock to Equal Weight from Overweight, though he raised his price target to $15 from $13. " "...Nonetheless, Palantir stock has rallied this week after major hedge funds—including Dan Loeb’s Third Point Management and Steve Cohen’s Point72 Asset Management—recently disclosed holdings of Palantir. " this is the same Keith.