By Emily Dattilo
Palantir Technologies had meteoric gains in 2024, but the artificial-intelligence software company's multiple is returning from outer space, according to analysts at Jefferies.
The company's enterprise value to next-12-months of revenue multiple has declined to 46 times this year from 55 times after soaring nearly 300% in 2024, wrote analysts led by Brent Thill. They rate Palantir at Underperform with a price target on the stock of $28.
The last time multiples swooped that high was during the Covid bubble when high growth names including Snowflake, CrowdStrike Holdings, and Datadog all saw that metric increase sharply at the same time, the analysts continued.
"However, we are now in a more normalized macro environment, and we think any negative factors (changing interest rates, AI hype turns, insider selling, etc) may cause PLTR's multiple to further compress," analysts wrote.
Palantir stock rose 1.7% to $66.08 in premarket trading Tuesday, which would snap a five-day losing streak, according to Dow Jones Market Data. The stock has declined 13% this year after gaining more than 300% in 2024.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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January 14, 2025 07:59 ET (12:59 GMT)
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