Palantir Technologies shares were down more than 2% on Tuesday on the New York Stock Exchange, following a downgrade by analysts at Mizuho.

This morning, the research firm cut its opinion on the predictive analytics specialist's shares to 'underperform' from 'neutral', with its price target raised from $21 to $22.

In a research note, Mizuho highlights the stock's 'rich' valuation, while acknowledging that the Denver, Colorado-based group has generated solid performances in recent quarters.

This is encouraging, but we remain concerned about the lack of visibility characterizing Palantir's business", he says, expressing "limited" confidence in the company's ability to consistently outperform market expectations.

Above all, concludes Mizuho, Palantir's share price has soared by 67% since the start of the year, resulting in a valuation multiple of 21x which, in his view, is difficult to justify insofar as it incorporates the scenario of a 'significant' acceleration in growth compared with the 20%/21% targeted by consensus.

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