Research firm Mizuho has lowered its opinion on the stock of predictive analytics specialist Palantir to 'underperform' from 'neutral', with its price target raised from $21 to $22.

In a research note, Mizuho highlights the stock's 'rich' valuation, while acknowledging that the Denver, Colorado-based group has generated solid performances in recent quarters.

This is encouraging, but we remain concerned about the lack of visibility characterizing Palantir's business", he says, expressing "limited" confidence in the company's ability to consistently outperform market expectations.

Above all, concludes Mizuho, Palantir's share price has soared by 67% since the start of the year, resulting in a valuation multiple of 21x, which in his view is difficult to justify insofar as it incorporates the scenario of a 'significant' acceleration in growth, compared with the 20%/21% targeted by consensus.

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