Palantir downgraded to Hold at HSBC on emerging competition

As previously reported, HSBC analyst Stephen Bersey downgraded Palantir (PLTR) to Hold from Buy with a price target of $151, down from $205. Palantir pioneered the forward deployed engineer model by embedding engineers within customer organizations, but the success is inviting similar approaches by competitors like OpenAI, says the analyst, who also thinks the proliferation of agentic frameworks and model context protocol servers mean the company’s traditional barriers to entry are starting to erode. Anthropic has seen its revenue surge and HSBC is concerned some of Anthropic’s growth may be coming at Palantir’s expense, the analyst added.