Palantir: stock declines, richly valued according to HSBC

(CercleFinance.com) - Palantir opened lower on the New York Stock Exchange on Thursday, with the stock suffering the knock-on effect of a downgrade by HSBC linked to valuation issues.


At around 10.15 am, shares in the predictive analytics specialist were down 0.7%, while the S&P 500 was up 0.3%.

In a note released yesterday, HSBC analysts said they had reduced their recommendation on the stock from "buy" to "hold", with the price target maintained at $22.

While acknowledging that the developer of data processing software for mass data ('big data') is a 'solid' company, the research firm believes that its share price more than reflects its 'impressive' growth prospects, with a richly-valued price/growth ratio of 3.16x, compared with 2x for the rest of the sector.

The share price is still up 46% since January 1, and 149% over the past 12 months.

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