Market Overview

Palantir Vulnerable With Valuation And Lockup Concerns, Citi Says

Share:
Palantir Vulnerable With Valuation And Lockup Concerns, Citi Says

Shares of Palantir Technologies (NASDAQ: PLTR) are up over 150% since going public with a direct listing in September. The rise in the share price has prompted a sell-side downgrade.

The Palantir Analyst: Citi downgrades Palantir's stock to Sell/High Risk and raises the price target from $10 to $15.

The Palantir Takeaways: With the rise in the company’s share price, Citi analysts say the company looks vulnerable in 2021. COVID-19 contracts were a big part of the growth in the last fiscal year and those could cause tough comparables if they're not renewed or expired.

The commercial business is the main concern for Citi analysts. High levels of competition and a lack of investment by Palantir in the right areas of the business are concerns.

Related Link: Palantir Shares Sink As Company Raises Guidance, Lands Major Contracts In Q3

Stronger government contracts are seen as positive for the company and the reason for the price target increase.

Palantir is scheduled to report fourth-quarter earnings in February. A large share lockup expiration will be around the time of earnings, creating two large catalysts happening around the same time.

PLTR Price Action: Shares of Palantir are up 2% to $26.72 at publication time.

Photo courtesy: Cory Doctorow via Flickr

Latest Ratings for PLTR

DateFirmActionFromTo
Jan 2021CitigroupDowngradesNeutralSell
Dec 2020Credit SuisseDowngradesNeutralUnderperform
Dec 2020Morgan StanleyDowngradesEqual-WeightUnderweight

View More Analyst Ratings for PLTR
View the Latest Analyst Ratings

 

Related Articles (PLTR)

View Comments and Join the Discussion!

Posted-In: Citi Covid-19Analyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
LNCMorgan StanleyMaintains60.0
JMIAMorgan StanleyMaintains32.0
GRPNMorgan StanleyMaintains34.0
ARCTB. Riley FBRDowngrades77.0
GLMorgan StanleyMaintains93.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com