Jefferies sees more downside for Palantir despite recent selloff

Jefferies says that while Palantir (PLTR) shares are down 15% year-to-date, still trades at 46 times enterprise value to next 12 months revenue, or greater than two-times next highest software name, after rallying 341% in 2024. Insider selling on 10b5-1 plans continues to increase with the CEO selling over $2B in stock and other executives selling over $600M over the last five months, the analyst tells investors in a research note titled “Multiple Coming Back From Outer Space.” Jefferies points out that Palantir’s active institutional ownership increased five points to 32% post the Nasdaq 100 inclusion, which may reduce the stock’s retail premium going forward. The firm believes there is more downside ahead on multiple compression and keeps an Underweight rating on the name with a $28 price target The stock closed Monday down 3% to $64.98.