Palantir Technologies Inc. : Jefferies & Co. senkt seine Bewertung auf Verkaufen from

Palantir Technologies Inc.: Jefferies & Co. Downgrades to Sell

Key Takeaways

* Jefferies & Co. has downgraded Palantir Technologies Inc. to Sell from Hold. * The downgrade comes amid concerns about Palantir's government contract reliance and slowing growth.

Jefferies Downgrades Palantir to Sell

Palantir Technologies Inc. (PLTR) has received a downgrade from Jefferies & Co. The firm lowered its rating on the data analytics company to Sell from Hold, citing concerns about Palantir's reliance on government contracts and slowing growth. Jefferies analyst Brent Thill wrote in a note to clients that he believes Palantir's "growth trajectory is slowing" and that the company's "government reliance remains a concern." Thill noted that Palantir's government revenue declined in the fourth quarter of 2022 and that the company's commercial revenue growth has also slowed.

Government Contract Reliance

Palantir has long relied on government contracts for the majority of its revenue. However, the company has been facing increased competition from other data analytics companies, and it has also been impacted by the Biden administration's decision to scale back its use of contractors.

Slowing Growth

Palantir's growth has also slowed in recent quarters. The company's revenue grew by just 28% in the fourth quarter of 2022, down from 49% growth in the same period a year earlier. Thill wrote that he believes Palantir's "growth trajectory is slowing" and that the company's "government reliance remains a concern." He lowered his price target on Palantir to $7.50 from $10.

Conclusion

Jefferies' downgrade of Palantir is a sign of the challenges that the company is facing. Palantir's reliance on government contracts and its slowing growth are both concerns for investors. It remains to be seen whether the company can address these concerns and return to growth.