December 3, 2022

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The market undervalues ​​Palantir

1 min read

©Health & Fitness Journal. The Market Undervalues ​​Palantir (PLTR) – BofA

By Sam Boughedda

BofA analysts raised the company’s price target for Palantir (NYSE:) to $14 from $13 in a note Thursday, saying the market value is currently missing key aspects of the company.

“Palantir (PLTR) stock fell 11.5% (vs. S&P 500 +1.0%) on Monday on growth concerns. The market reaction has been deja vu for the last four release dates as PLTR has outperformed the market by ~14 percentage points,” the analyst wrote. “What surprises us most is the lack of additional concerns about the stock, even growth.”

The analysts also noted that analysis of the sum of BofA’s parts suggests that at the current share price, “You get Commercial & Cash for free.”

“As global recession risks and interest rates rise, we see cash as increasingly important to a company’s strength. Palantir ended the quarter with $2.4 billion in cash (excluding debt) and has access to up to $950 million in additional liquidity. The balance sheet more robust than its competitors should allow them to weather the potential headwinds of a global recession better manage and less aggressive pricing arrangements to capitalize on any chance of disruption going forward,” the analysts added.

Palantir shares are up more than 9% in Thursday’s session.

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