HSBC Is Souring on Palantir (PLTR) Stock


  • Palantir Technologies (PLTR) stock is slipping on Wednesday after getting a downgrade.
  • HSBC analyst Stephen Bersey dropped the stock to a “hold” rating.
  • However, the analyst maintained the firm’s $22 price target for PLTR stock.
PLTR Stock - HSBC Is Souring on Palantir (PLTR) Stock

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Palantir Technologies (NYSE:PLTR) stock is in the news Wednesday after analysts at HSBC downgraded the big data analytics company’s shares this morning.

That downgrade has analyst Stephen Bersey dropping the shares to a “hold’ rating today. To put that in perspective, the analyst consensus rating for PLTR stock is a reduce rating based on 14 opinions.

Despite the downgrade, the HSBC analyst maintained the firm’s price target of $22 per share for PLTR stock. That represents a potential downside of 8% compared to its prior closing price. However, it is still above the analyst consensus price prediction of $15.68 per share.

What’s Behind the PLTR Stock Downgrade?

Here’s what Bersey said about Palantir in a note to clients obtained by CNBC:

“Palantir shares are trading at non-GAAP PE of 76.4x for 2024e (sector median at 35.4x) […] The premium vs. the sector is even higher on GAAP-based metrics due to Palantir’s high share-based compensation.”

While the HSBC analyst downgraded PLTR stock over its premium, he still belives the company is built for long-term success. That comes from the increasing demand for its artificial intelligence (AI) products.

PLTR stock is down slightly as of Wednesday morning but up 45.6% year-to-date (YTD).

Investors seeking out even more of the most recent stock market stories are going to want to stick around!

We have all of the hottest stock market news that traders need to know about on Wednesday! Among that is what’s moving shares of Marathon Digital (NASDAQ:MARA), Quantum (NASDAQ:QMCO) and Azitra (NYSEMKT:AZTR) stock today. You can read up on all of these stories at the following links!

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On the date of publication, William White did not hold (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 Publishing Guidelines.

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