William Blair analyst Louie DiPalma has reiterated their bearish stance on PLTR stock, giving a Sell rating today.
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Louie DiPalma has given his Sell rating due to a combination of factors impacting Palantir Technologies. The volatility of Palantir’s shares is driven by budgetary concerns and possible shifts in funding priorities within the U.S. armed services. A significant portion of Palantir’s government revenue, approximately 22%, is dependent on the U.S. Army, with potential delays in important contracts such as TITAN and Army Network modernization posing a risk.
Another critical factor in the Sell rating is the deceleration in revenue growth experienced by Palantir’s U.S. government business in recent years. This trend, coupled with the risk of large contract variability, could lead to a contraction in valuation multiples. Louie DiPalma also highlights the disparity in market capitalization between Palantir and competitors like Snowflake, suggesting more than 20% downside potential in Palantir’s stock value. These elements contribute to the reaffirmation of the Underperform rating, despite the potential positive impact of artificial intelligence on Palantir’s operations.
According to TipRanks, DiPalma is ranked #9259 out of 9369 analysts.
In another report released today, RBC Capital also maintained a Sell rating on the stock with a $40.00 price target.