- Palantir Technologies (PLTR) shares dropped nearly 6% to $84.91 in early trading Friday after Goldman Sachs (GS) analyst Gabriela Borges reaffirmed a ‘Neutral’ rating with an $80 price target, following a March 11 visit to its New York office.
- Borges praised Palantir’s ontology and AI Platform (AIP) for integrating data and delivering high-ROI AI workflows, as discussed with executives and highlighted at AIPCon 6 on March 13, but noted uncertainty about future simplification of custom AI processes.
- Despite Palantir’s technological edge, its high valuation—446x P/E and 603.5x EV/EBITDA—supports the Neutral stance, signaling potential risks as the broader tech ecosystem evolves.
Palantir Technologies (PLTR) experienced a nearly 6% drop in its shares to $84.91 in early trading on Friday, reflecting market reactions to Goldman Sachs (GS) analyst Gabriela Borges maintaining a ‘Neutral’ rating with a steady price target of $80.00. Borges’s assessment came after a visit to Palantir’s New York office on March 11, where she and her team engaged with key figures like Anuraag Bahl, Head of AIP and VP of Product, CFO Dave Glazer, and Cary Li, head of Investor Relations. The visit offered a deep dive into Palantir’s standout feature – its ontology – a system that seamlessly connects diverse organizational data to enhance operational decision-making, a capability that has defined the company since its founding.
The Goldman Sachs team also discussed insights from AIPCon 6, held on March 13, which showcased Palantir’s AI Platform (AIP) and its ability to rapidly deploy AI applications with strong returns on investment. This platform builds on the ontology’s strength, enabling custom workflows that are increasingly vital as businesses race to integrate AI into their operations. Palantir’s technology shines in this space, offering a competitive edge by turning complex data into actionable outcomes. However, Borges tempered enthusiasm with caution, pointing to the company’s lofty valuation – sporting a price-to-earnings ratio of 446x and an enterprise value-to-EBITDA of 603.5x – which raises questions about sustainability in a maturing tech landscape.
While Palantir’s distinct approach to AI and data integration sets it apart, Borges highlighted uncertainty about whether building custom AI workflows will simplify as broader industry tools evolve. This ambiguity, paired with high valuation metrics, underpins her ‘Neutral’ stance, suggesting that despite its technological prowess, Palantir’s stock may face headwinds as investors weigh its premium pricing against future growth potential.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply