PLTR Stock Falls Another 5% as RBC Downgrades Palantir

Palantir Technologies (NYSE:PLTR) stock is slipping on Tuesday as investors react to a downgrade for the shares from RBC Capital Markets analyst Rishi Jaluria.

Palantir (PLTR stock) logo on data network background, imaginary location in the future

Source: Spyro the Dragon / Shutterstock.com

The downgrade for PLTR stock has the analyst dropping it from a “sector perform” rating to a new “underperform” rating. For the record, the consensus rating for shares of PLTR is “hold.” That comes from three “buy,” four “hold” and two “sell” ratings.

To go along with that downgrade is a lowered price target for PLTR stock. Jaluria cut his price prediction for PLTR in half from $12 per share to $6 per share. For comparison, the consensus price target for the data company’s shares is $14.89.

So what’s behind this bearish stance on PLTR stock. Here’s what the RBC Capital Markets analyst said in a note obtained by CNBC.

“The backlog deceleration implies revenue growth (both as reported and ex-investment agreements) should continue to decelerate (2Q22 guide implies 18% Y/Y vs. 19% in 1Q22). Therefore, we currently struggle to underwrite management’s maintained FY guide of 30%+ growth, which implies a 2H acceleration.”

It’s also worth pointing out that this downgrade for PLTR stock comes after the release of its Q1 2022 earnings report yesterday. This saw it miss earnings estimates while also posting weak guidance for the upcoming quarter.

PLTR stock is set to see heavy trading before markets close today. As of this writing, more than 45 million shares of the stock had changed hands. That’s quickly approaching the company’s daily average trading volume of 50 million shares.

PLTR stock is down 5.2% as of Tuesday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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