Palantir: Mizuho lowers its opinion and target
(CercleFinance.com) - Research firm Mizuho has lowered its opinion on the stock of predictive analytics specialist Palantir to 'underperform' from 'neutral', with its price target raised from $21 to $22.
In a research note, Mizuho highlights the stock's 'rich' valuation, while acknowledging that the Denver, Colorado-based group has generated solid performances in recent quarters.
This is encouraging, but we remain concerned about the lack of visibility characterizing Palantir's business", he says, expressing "limited" confidence in the company's ability to consistently outperform market expectations.
Above all, concludes Mizuho, Palantir's share price has soared by 67% since the start of the year, resulting in a valuation multiple of 21x, which in his view is difficult to justify insofar as it incorporates the scenario of a 'significant' acceleration in growth, compared with the 20%/21% targeted by consensus.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a research note, Mizuho highlights the stock's 'rich' valuation, while acknowledging that the Denver, Colorado-based group has generated solid performances in recent quarters.
This is encouraging, but we remain concerned about the lack of visibility characterizing Palantir's business", he says, expressing "limited" confidence in the company's ability to consistently outperform market expectations.
Above all, concludes Mizuho, Palantir's share price has soared by 67% since the start of the year, resulting in a valuation multiple of 21x, which in his view is difficult to justify insofar as it incorporates the scenario of a 'significant' acceleration in growth, compared with the 20%/21% targeted by consensus.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.