Raymond James Downgrades Palantir Technologies Outlook

A recent report indicates that Raymond James has downgraded its outlook for Palantir Technologies from Outperform to Market Perform, projecting a significant downside. Projected revenue growth remains positive, while institutional sentiment shows varied movements in stock ownership.

Date: 24-09-2024

AI Rating: 4

The recent report highlights critical points regarding Palantir Technologies (PTX) that could affect stock prices in the upcoming period.

Outlook Downgrade: Raymond James has downgraded Palantir Technologies' outlook from Outperform to Market Perform. This shift can indicate a bearish sentiment among investors as analysts typically reassess potential growth when downgrades occur.

Price Target Decrease: The average one-year price target for Palantir is now set at 23.58€, representing a significant 28.55% decrease from the latest closing price of 33.00€. This projection could lead to initial negative reactions from investors who may reassess their positions, anticipating a decline in stock value.

Revenue Growth: Despite the downgrade, it's noted that Palantir Technologies' projected annual revenue is expected to be 2,690MM€, reflecting an increase of 8.51%. Positive revenue growth can provide a counterbalance to the downgrade, indicating the company is still expanding and generating higher operational income.

Earnings Per Share (EPS): The non-GAAP projected EPS stands at 0.24. While earning figures can influence investor sentiments positively, the context of the downgrade indicates that expectations might not exceed these figures.

Institutional Holdings: The report mentions that there are currently 1,652 funds reporting positions in Palantir Technologies, a sign that institutional interest remains stable, albeit with mixed portfolio adjustments. For instance, Vanguard Total Stock Market Index Fund increased its shareholding, while Renaissance Technologies saw a noticeable decrease.

This fluctuation in institutional ownership could signal varying sentiment about Palantir's potential among major investors, impacting future stock performance.

Stocks: PTX