UPDATE: Morgan Stanley Upgrades Palantir Technologies Inc. (PLTR) to Equalweight
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Morgan Stanley analyst Keith Weiss upgraded Palantir Technologies Inc. (NYSE: PLTR) from Underweight to Equalweight with a price target of $16.00 (from $24.00).
The analyst comments "The combination of a well positioned Government business, potential for Commercial to accelerate on sales investments, and strong unit economics, results in our new $16 price target and upgrade to EW. At $16, the company is valued at 13.1x EV/CY23 Sales or 0.44 EV/S/G. Today, PLTR trades at a discount to peers on a growth adjusted basis despite high growth and significant cash flow generation, largely due to uncertainty in the durability of growth levels and loss of management credibility around investments in companies who agree to utilize the software platform. We think these concerns are adequately priced in and that the risk/reward skew has shifted towards the neutral to positive territory at current levels of 8.7x EV/CY23 Sales or 0.29x growth adjusted vs large-cap peers at 11.3x and 0.50x, respectively."
Shares of Palantir Technologies Inc. closed at $10.96 yesterday.
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