Palantir Technologies shares were down on Wall Street on Friday, after Jefferies downgraded its recommendation due to the AI-related hype that has recently buoyed the stock.

At around 10.15 a.m. (New York time), the share price was down 1.5%, back to testing its lowest levels since the end of last October.

Jefferies has downgraded its opinion on the US data analytics specialist to 'underperform', with a price target of $13.

While admitting that the software group has a long-term technological advantage in AI, the analyst also believes that the euphoria surrounding the technology has driven the stock to 'unsustainable' valuation levels.

In his view, Palantir can indeed gain market share in this largely under-exploited market at present, but its monetization strategy in this area is non-existent at present, leading him to perceive more risk than potential good surprises at current levels.

Copyright (c) 2024 CercleFinance.com. All rights reserved.