Palantir falls as Morgan Stanley assigns an Underweight rating, citing valuation concerns despite strong AI-driven growth and government contracts.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Palantir (PLTR) stock is sinking 6% today after Morgan Stanley analyst Sanjit Singh assumed coverage of the shares with an Underweight rating this morning. Singh noted that the company had become “a top partner” when it comes to fast AI projects,

Palantir and Nvidia were among the top five winners of the Nasdaq 100 Index for 2024, up roughly 340% and 171%, respectively. The two companies are leaders in their industry. Nvidia focuses on artificial intelligence hardware,

Shares of data-analytics firm Palantir Technologies now have an Underweight rating from Morgan Stanley analyst Sanjit Singh, and a $60 target price.