Palantir downgraded to Underperform from Hold at Jefferies

Jefferies downgraded Palantir to Underperform from Hold with a price target of $13, down from $18. The analyst expects 2024 to be another positive year for software, but sys the group is likely see more measured returns versus 2023. The first half of 2024 could be challenging given the Q4 rally and seasonal Q1 “black ice,” the analyst tells investors in a research note. The firm would position selectively for a better second half of the year, driven by fundamental acceleration, increased adoption of artificial intelligence, lower interest rates, “still reasonable” valuations, and potential acquisition pick-up. The rating change is part of Jefferies’ 2024 software playbook. The firm believes Palantir shares are “overhyped on AI.”