Palantir dips as Raymond James downgrades on 'rich' valuation
** Shares of Palantir Technologies PLTR.N down 1.3% at $36.72 premarket after Raymond James downgrades data analytics firm to "market perform" from "outperform", citing elevated valuation
** Brokerage says remains enthusiastic about co's longer term positioning in artificial intelligence (AI), but shares "need to consolidate stellar gains over the last couple of years and grow into its rich valuation"
** Valuation has expanded roughly fivefold since co launched AIP in May 2023, with stock now trading at 26.1x brokerage's 2025E sales vs historical average of 14.9x, Raymond James says
** Raymond James points to stock's 23% gain over past two weeks since S&P 500 inclusion announcement, saying this leaves "significant positive estimate revisions as the lone catalyst from here"
** Palantir joins the S&P 500 .SPX effective today along with Dell Technologies DELL.N and casualty insurer Erie Indemnity ERIE.O
** 5 of 19 brokerages covering PLTR rate stock "strong buy" or "buy", 8 have "hold" and 6 rate "sell" or "strong sell", per LSEG
** Median PT of $28 up from $23.50 on Jun 23
** Through Fri close, stock up ~117% YTD. Stock ended 2022 at $6.42
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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