- 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.
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