- The stock price of Palantir Technologies Inc (NYSE: PLTR) increased by over 2% pre-market today. This is why.
The stock price of Palantir Technologies Inc (NYSE: PLTR) increased by over 2% pre-market today. Investors are responding positively to a bullish research report.
Goldman Sachs analyst Gabriela Borges initiated coverage on Palantir with a “Neutral” rating. And Borges assigned the company a price target of $10.
“We view Palantir as uniquely positioned in an ecosystem of data analytics vendors, given its holistic solutions encompassing data preparation, data modeling, and forward-deployed engineers,” wrote Borges in a research note. “We are also constructive on its longer-term opportunity to succeed in the enterprise, as it continues to scale its enterprise sales force and given recent product updates to allow more dynamic implementations. However, we initiate with a Neutral rating given limited visibility into the cadence of the business in any given quarter, especially in a weaker macro environment where enterprises may be reluctant to embark on larger digital transformation projects (Palantir’s average deal size is $8 million, which benchmarks at the top of our coverage), and when Palantir is anniversarying significant COVID-catalyzed engagements.”
The price target reflects this limited visibility by benchmarking to both SaaS comparables and defense/government technology comparables.
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