Shares of Palantir Technologies Inc. (PLTR) are down 0.64% near mid-day trading on Wednesday after Mizuho Securities announced that they have started coverage on the American software company with a Neutral rating and a $7.00 price target.
The company uses its software to help customers analyze all data available to them and produce actionable insights.
Analyst Matthew Broome wrote in a note, “PLTR's unique software is capable of creating significant operational value for its customers, and we expect ongoing global disruptions can help to further catalyze adoption. However, growth across both its government and commercial businesses has slowed significantly, and an uncertain macro environment makes meaningful near-term reacceleration much more difficult.”
PLTR continues to become a more strategic partner to the US Government and has also been successfully ramping its base of commercial customers in recent quarters. However, the quarterly results for each business are typically lumpy due to the timing of large deals and global disruptions, as well as other macro factors. Given that most of its contracts are cancellable by the customer, including for convenience, there is clearly incremental risk going into 2023.
By Michael Elkins | Michael.Elkins@streetinsider.com