By Sam Boughedda
Palantir (NYSE:PLTR) has been downgraded to Neutral from Buy by a Monness, Crespi, Hardt analyst on Friday, with the analyst saying they are moving to the sidelines after a generous rebound.
Describing the last several months as "harrowing" for next-gen software companies still trying to gain credibility with investors, the analyst stated the road ahead appears treacherous.
"Palantir's stock has enjoyed a sharp rebound from the lows made in May and we fear this strength will prove unsustainable in the current environment," he wrote.
"In our view, Palantir is well positioned to benefit from strong secular trends around digital transformation, Big Data, the cloud, and artificial intelligence; however, the economy appears to be in a recession, equity markets are in turmoil, and the geopolitical landscape is unpredictable," explained the analyst.
"We believe Palantir will at least meet our 2Q:22 revenue estimate of $459.4 million (up 22%; Street is at $470.9 million) and our EPS forecast of $0.01 (Street is at $0.03). Our revenue estimate is below the Street and lower than guidance. That said, 2Q:22 profits could be susceptible to the negative impact of non-operating items, including unrealized losses from investments."
Palantir shares tumbled over 6.6% Friday.