Palantir's Uncertain Near-Term Prospects Make Reacceleration Difficult, Analyst Says - Palantir Technologies (NYSE:PLTR)

Mizuho analyst Matthew Broome initiated coverage on Palantir Technologies Inc PLTR with a Neutral rating and a price target of $7.
PLTR's unique software can create significant operational value for its customers, and ongoing global disruptions like the pandemic and war can help to catalyze adoption further.
However, growth across its government and commercial businesses has slowed significantly, and an uncertain macro environment makes meaningful near-term reacceleration much more difficult.
PLTR continues to become a more strategic partner to the U.S. Government following a successful court ruling in 2018. It has also been ramping up its commercial customer base in recent quarters.
However, the quarterly results for each business are typically lumpy due to the timing of large deals, global disruptions, and other macro factors.
Given that most of its contracts are cancellable by the customer, the incremental risk is going into an uncertain 2023.
The price target reflects a valuation multiple roughly in line with the analyst's data and analytics SaaS group median.
Price Action: PLTR shares traded lower by 0.92% at $7.01 on the last check Wednesday.