HomeMarket NewsThe Whims of Wall Street: Palantir (PLTR) Stock Downgraded by Monness Analysts

The Whims of Wall Street: Palantir (PLTR) Stock Downgraded by Monness Analysts

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PLTR stock - Why Monness Analysts Just Downgraded Palantir (PLTR) Stock

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Has Palantir (NYSE:PLTR) stock reached its peak? Monness, Crespi, Hardt think so. Dubbing its valuation as “egregiously rich,” the Wall Street firm just sunk PLTR stock with a bearish target price of $20, switching ratings from “neutral” to “sell.” The market, painting it red at a 5% dip, ponders if this spells the end for the artificial intelligence (AI) pioneer.

Yet, amidst the storm, some remain optimistic. Despite recent struggles, Palantir remains a foremost AI player, akin to the quest for the next Nvidia (NASDAQ:NVDA).

Unpacking PLTR Stock’s Rollercoaster Ride

Though recent times have been rough, PLTR stock soared nearly 50% in the past half-year, riding the AI wave post-November 2022 ChatGPT launch. However, Wall Street has always been lukewarm on Palantir. Monness is not alone in raising red flags; just last week, Jefferies restated a “hold” stance.

In a damning report, analyst Brian White painted a bleak picture, attributing Palantir’s overvaluation to an “unprecedented generative AI hype cycle.” Monness also knocked Palantir’s erratic government contract revenue and shoddy execution, portending darker times.

Despite the naysayers, optimism looms. Louis Navellier and team penned a bullish PLTR thesis, debunking bearish claims. Recognizing the inflated valuation, Navellier argues other factors reign supreme:

“Concerns mostly hover around valuation and potential pitfalls. Yes, shares of this AI powerhouse may seem ‘priced for perfection.’ Yet, a sudden nosedive is not inevitable. While trading at 76.2 times forward earnings may appear steep, future outcomes could maintain, even boost, its value.”

The Bottom Line

Could the bears be mistaken about PLTR? Palantir is no ordinary firm. While famed for data analytics, its reach extends far beyond. From cybersecurity to automotive and energy sectors, Palantir’s software spans various industries. Despite recent market woes, expect PLTR to dust off and keep climbing. Despite Wall Street’s frown, Palantir’s allure remains intact, and the AI craze persists unabated.

As of the article’s publication, Samuel O’Brient did not have any direct or indirect positions in the mentioned securities. The views expressed here belong solely to the author and adhere to the principles outlined in InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, focusing on financial markets, global economic trends, and public policy. His weekly column delves into political news crucial for investors.

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