Palantir downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Palantir Technologies to Underweight from Equal Weight with a price target of $9, up from $8. The analyst says near-term optimism in the company’s artificial intelligence product cycle and the stock’s valuation premium create an unfavorable risk/reward in the shares. Visibility on Palantir’s Artificial Intelligence Platform monetization still remains low, the government segment appears unlikely to provide an offset and estimates already imply a second half of 2023 growth reacceleration, the analyst tells investors in a research note.