Analyst Downgrades and Other Red Flags Are Bearish for Palantir Given the high valuation of PLTR stock and two bearish anecdotes, PLTR stock remains a sell Jan 21, 2021, 3:59 pm EDT January 21, 2021
Palantir Technologies (NYSE:
PLTR). What’s more, there is an additional red flag that’s come up in my analysis aof the company. As such, I continue to recommend that longer-term investors sell their shares of PLTR stock.
Source: rblfmr / Shutterstock.com
Over the last month, Citi and Credit Suisse both downgraded the shares to a sell rating or the equivalent. Both firms cited valuation as one of the key reasons for their decision. And they raised other concerns as well, like a large supply of shares becoming free to trade on the market.
Palantir went public in September in a direct listing. Michael Nagle/Bloomberg
Palantir Technologies has had an impressive early run in the public markets, direct-listing on the New York Stock Exchange in late September at $10 a share and rallying as high as $33.50 before recently settling into the mid-to-high $20s. But at least one analyst thinks the stock is heading for a far tougher year in 2021.
Citigroup’s Tyler Radke on Wednesday cut his rating on Palantir (ticker: PLTR) to Sell from Neutral, while lifting his price target to $15 from $10. He thinks that after the huge rally since its direct listing, the stock is vulnerable heading into 2021 given a coming lockup expiration and likely growth deceleration.
Palantir Falls as Citi Cuts to Sell on Valuation, Growth Prospects
Palantir was downgraded to sell at Citi, which cited concerns about the software company s valuation and growth prospects.
Author:
Shares of Palantir Technologies (
PLTR) - Get Report were lower on Wednesday after analysts at Citi cut the software company to sell from neutral, citing concern about its valuation and growth prospects.
Citi analyst Tyler Radke called the stock vulnerable in 2021. Radke nonetheless increased his price target on the Denver company to $15 a share from $10.
Palantir shares at last check were down 2.3% to $25.58. The company went public at the end of September in a direct listing, which bypasses the usual IPO process in favor of enabling current holders to sell shares to the public.
Migration of walleyes from Lake Superior, up the St. Louis River, draws anglers to harbor ice. 6:30 am, Jan. 1, 2021 ×
Joe Hagen fishes on Superior Bay Tuesday morning. Fishing was slow Tuesday, but two days before Hagen caught and released a 29-inch walleye. (Steve Kuchera / skuchera@duluthnews.com)
Joe Hagen was still smiling on Tuesday from the monster walleye he caught Sunday, so the fact the fish weren’t biting much on Tuesday wasn’t bothering him.
“That’s my biggest walleye ever,’’ Hagen said of the 29-inch beauty he landed in Twin Ports harbor officially Superior Bay about a quarter-mile off Park Point.