Is Palantir Technologies Stock a Buy Now?
Share prices of Palantir Technologies (NYSE: PLTR) fell more than 6% after the high-flying software platforms provider received an analyst downgrade. Analyst Brian White of brokerage Monness, Crespi, Hardt & Co. downgraded the stock to sell from neutral, predicting that it could get a reality check following its impressive surge in the past year.
Palantir stock has rocketed 185% in the past year thanks to the company's growing credentials in the artificial intelligence (AI) software market. White's price target of $20 suggests that Palantir could drop 13% from current levels because of its rich valuation. Is this a warning for investors to hit the sell button, or should savvy investors consider Palantir's latest pullback as a buying opportunity? Let's find out.
White points out that the "unprecedented generative AI hype cycle" has brought Palantir stock to "an egregiously rich valuation." A closer look at the company's multiples indicates the analyst isn't wrong.
Source Fool.com
