Latest news with #GabrielaBorges
Yahoo
23-05-2025
- Business
- Yahoo
Palo Alto (PANW) Gets Price Target Boost, Goldman Sachs Stays Bullish
We recently published a list of . In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against other AI stocks on analysts' radar. The recently imposed US sanctions on chip use have angered China. In recent news, the country has stated that it may take legal action against any individual or organization who are found assisting or implementing U.S. measures that advise companies against using their advanced semiconductors. According to the U.S. published guidance, companies risk violating export controls if found using Ascend AI chips from Shenzhen-based Huawei. In response, China's commerce ministry said there could be 'corresponding legal liabilities' against those involved in implementing U.S. measures and that it constitutes 'discriminatory restrictive measures' against Chinese firms. READ ALSO: and . The sanctions are seemingly a new strategy adopted by the US to curb China's progress in the AI arms race. The world is yet to watch the success of this strategy as opposed to the AI diffusion rule imposed earlier, which the world came to know had failed miserably after the arrival of DeepSeek. Even Jensen Huang has deemed the AI diffusion rule to be a failure. 'All in all, the export control was a failure. The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.' In fact, the sales block advanced AI chips to China, forcing companies to buy semiconductors from Chinese designers. It also pushed the country to invest aggressively in a robust supply chain that doesn't rely on manufacturers outside the country. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A cutting-edge computer lab full of IT experts monitoring the security of multiple Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. One of the most notable analyst calls on Wednesday, May 21, is for Palo Alto Networks. Goldman Sachs analyst Gabriela Borges raised the price target on the stock to $231.00 (from $215.00) while maintaining a 'Buy' rating. Analyst Gabriela Borges expressed optimism about the company's strategic positioning in the industry. The analyst noted Palo Alto's mixed performance over the quarters due to industry spending normalization, increased cloud competition, and changes in the company's business model. Despite these factors, the company is recognized to be in a good position to lead strategic enterprise security discussions and consolidate spending in the medium term, alongside Crowdstrike and Microsoft. Borges also noted that the field of next-generation AI security vendors will likely undergo consolidation over time, and that Palo Alto is likely to benefit from this. 'We maintain a Buy rating on the stock. Fundamentals have been mixed over the past 4+ quarters, in our view due to industry normalization in network security industry spending, competition in cloud, and moving pieces to the model (such as the mix of financing deals). However, we continue to view Palo Alto as one of only three companies well positioned to have strategic enterprise security conversations to consolidate spend over the medium term, with CrowdStrike and Microsoft the other two. While we expect to see a number of next-gen vendors in AI security, we ultimately believe that this field will consolidate over time in favor of leaders such as Palo Alto, that have the ability and willingness to invest in technology leadership, outsource R&D via M&A, and realize attractive unit economics from cross sell.' Overall, PANW ranks 9th on our list of AI stocks on analysts' radar. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PANW and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
06-05-2025
- Business
- CNBC
Analysts call for big declines in Palantir despite solid earnings; Goldman sees more than 25% drop
Many analysts on Wall Street still not sold on Palantir even after the company posted first-quarter results and raised its full-year guidance. The firm reported in-line earnings and topped revenue estimates in the first quarter and upped its full-year outlook. CEO Alex Karp told investors on the company's earnings call that Palantir is in the "middle of a tectonic shift in the adoption" for its software, especially in its government segment. But while a few analysts raised their price targets on the stock following the results, many maintained hold or sell-equivalent ratings as concerns remain that Palantir may be overvalued. Among these are Goldman Sachs and Morgan Stanley. Goldman sees more than 27% downside, while Morgan Stanley calls for a nearly 21% decline. Shares were down 8% in the premarket. That said they are up more than 63% year to date. PLTR YTD mountain Palantir stock in 2025. Some shops, such as Loop Capital and Wedbush, had a more constructive outlook on the stock following the report. They reiterated their buy-equivalent ratings and bumped higher their price targets. Here's a look at some of the takeaways from Wall Street analysts. Goldman Sachs: maintains neutral rating, raises price target to $90 from $80 Analyst Gabriela Borges's new price target still signals downside of 27%. "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption; the continued push for efficiency and technology adoption in the US government; and adoption of Operation Warp Speed among new defense entrants, traditional defense companies, and the broader manufacturing industry." Cantor Fitzgerald: raises price target to $110 from $98 but keeps neutral rating Cantor's new target calls for roughly 11% downside from Monday's $123.77 close. "Palantir's strong results indicate continued strong investment from global organizations in leveraging AI to improve both business outcomes and operational efficiencies," analyst Thomas Blakey wrote on Tuesday. "The company is well positioned to benefit from these trends, in our view, supporting continued dynamic growth." Morgan Stanley: raises price target to $98 from $90, maintains equal weight rating Analyst Sanjit Singh's forecast implies nearly 21% downside for Palantir stock. The analyst said his fundamental view on Palantir remained unchanged following first-quarter results. "[We're] raising target to $98 but valuation [is] too expensive to underwrite a reasonable return at ~95x CY27 FCF keeping us EW as we await a better entry point," he said. Mizuho: underperform rating, increases price target to $94 from $80 Analyst Gregg Moskowitz's outlook implies more than 24% downside for Palantir. "We remain quite impressed by PLTR's recent execution, and given its strong positioning and execution, there's no denying that it is deserving of a premium valuation," Moskowitz said. "However, valuation cannot and should not be irrelevant, and we find it very difficult to justify PLTR's very high multiple - 60x CY2026E revenue - that in our view already discounts material acceleration and upside versus consensus expectations." Deutsche Bank: reiterates sell rating, raises price target to $80 from $50 Analyst Brad Zelnick's forecast equates to more than 35% downside. "Our FY26 estimates increase 6% on revenue and 13% on operating income but with the stock trading at 57x our CY26E revenue in [after hours] trading, our main concern continues to be valuation," Zelnick said. RBC: reiterates underperform rating and $40 price target Analyst Rishi Jaluria's price target signals nearly 70% downside from Monday's close. "Overall, Government results were better than expectations, but our concerns about the runway for growth and product differentiation remain. Commercial came in slightly below consensus. While 2025 numbers move higher on guidance ahead of consensus, we question conservatism and if estimate revisions are priced in from here. Jefferies: keeps underperform rating and $60 price target Analyst Brent Thill's price target points to a decline of more than 50%. "Fundamentals are clearly alive, but we think irrational valuation at 56x CY26 rev skews risk/reward negatively." Loop Capital: reiterates buy rating, raises price target to $130 from $125 The firm's new price target signals upside of 5% ahead. "In terms of the stock, you can gripe about valuation, and that's legitimate, but it's difficult to find fault with the fundamentals. Bottom line, the market for enterprise AI is enormous, is at a tipping point as small-scale pilot programs move into production and AI use cases grow exponentially across all industries, and we believe PLTR is uniquely positioned as one of the category leaders in the space," analyst Mark Schappel wrote. Wedbush: maintains outperform rating, raises price target to $140 from $120 Analyst Dan Ives' new target signals upside of 13%. "We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years."
Yahoo
31-03-2025
- Business
- Yahoo
Palantir Shares Drop Amid AI Spending Concerns, Goldman Sachs Maintains Neutral Rating
Shares of Palantir Technologies (PLTR, Financials) declined sharply Friday after Goldman Sachs reiterated a neutral rating and investors questioned the pace of artificial intelligence investment, partly due to a downsized initial public offering from CoreWeave. Palantir shares closed at $85.85, down 4.7% on the day, and slid a further 4% to $82.38 in pre-market trading Monday. The stock is still up 14.1% for the year but remains 27% below its mid-February peak. The Denver-based software company has seen growing demand for its artificial intelligence platform, known as AIP, which helps enterprises consolidate fragmented datasets into unified systems. Its ontology framework, which contextualizes and links business entities and workflows, has drawn particular attention from commercial clients seeking to accelerate AI deployment. Goldman Sachs analyst Gabriela Borges maintained her $80 price target in a note published Friday, emphasizing that Palantirs ontology continues to deliver quick implementation timelines and measurable returns. However, she cited concerns about broader AI investment trends as a moderating factor in her outlook. In February, Palantir reported fourth-quarter earnings of $0.14 per share, ahead of analyst estimates. Quarterly revenue jumped 36% year-over-year to $827.5 million, bolstered by AI-related products in its commercial business. For 2025, the company forecast revenue of approximately $3.75 billion, topping consensus estimates from London Stock Exchange Group. Commercial revenue alone is projected to grow 54% year-over-year to $1.08 billion. Still, uncertainty around U.S. defense spending has weighed on investor sentiment. Defense Secretary Peter Hegseth proposed cutting the Pentagon budget by $290 billion over five years, a move that could impact Palantir, which generated 17% of its revenue in 2024 from the U.S. Department of Defense, according to the companys annual report. Market watchers are also monitoring CoreWeave, a Nvidia-backed AI infrastructure provider, which recently slashed its IPO price and valuation by around 35%. The company now targets a $23 billion valuation, raising concerns about near-term AI demand, especially among enterprise clients. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
31-03-2025
- Business
- Globe and Mail
Government Budget Cuts and Goldman's Worries Weigh on Palantir Stock (PLTR)
Palantir Technologies (PLTR) stock dropped 4.74% to $84.58 on Friday, extending its losing streak to four sessions. The decline reflects broader market volatility and growing concerns over government spending cuts. Investors have been wary of Palantir's heavy reliance on government contracts, especially as budget constraints intensify. Adding to the pressure, Goldman Sachs analyst Gabriela Borges maintained a Neutral rating on the stock, citing valuation concerns and uncertainty over its long-term competitive edge. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Oracle Setback Highlights Spending Cuts One major factor dragging Palantir's stock lower is the U.S. Department of Defense (DoD) recently canceling its plans to use Oracle 's (ORCL) HR software due to delays and cost overruns, as reported by Bloomberg. While this decision directly affects Oracle, it also highlights broader cutbacks in government technology spending. With the DoD as a key client, Palantir relies heavily on government contracts. Investors fear that similar cuts could affect Palantir's deals, especially as agencies reassess their tech budgets. Defense Budget Cuts Weigh on Sentiment Adding to these concerns, the DoD recently announced another $580 million in budget cuts, affecting multiple programs, contracts, and grants. Since the company's main strength is providing data analysis and AI tools for government clients, any slowdown in federal spending could impact its growth. With defense budgets under pressure, Palantir's stock has taken a hit as traders worry about future revenue. Goldman's Insights Add to Uncertainty Around PLTR Stock Borges maintained a Neutral rating on Palantir stock, with a price target of $80 in a note dated March 28. After visiting Palantir's New York office, she shared her views on the company's core technology, The Ontology, which helps businesses organize and use their data for better decision-making. The analyst noted that Palantir has improved this system over time, but its overall approach has remained the same. With more companies adopting AI, Palantir's AI Platform (AIP) has become a major strength. However, Borges raised a concern that as AI technology advances, companies may find it easier to build their own AI tools. If that happens, Palantir's services may not seem as unique in the future. Another challenge she pointed out is Palantir's high valuation compared to other software firms. While the company has strong technology, its stock is more expensive than many of its peers, making some investors hesitant. What's Next for Palantir Stock? Palantir remains a leader in AI-driven data analysis, but the recent budget cuts and uncertainty in government spending have made investors cautious. The company's ability to secure new contracts and maintain its competitive edge in AI will be key factors in determining whether the stock can recover from this recent decline. Is Palantir Stock Worth Buying? Analysts prefer to remain on the sideline on Palantir stock for now. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 10 Holds, and four Sell ratings. The average Palantir Technologies price target of $92.13 implies 7.32% upside potential from current levels. Over the past year, PLTR stock is up over 275%. See more PLTR analyst ratings Disclosure
Globe and Mail
28-03-2025
- Business
- Globe and Mail
Goldman Sachs Maintains $80 Price Target for Palantir Stock as CoreWeave IPO Causes AI Rumble
AI stocks are in focus today after CoreWeave raised $1.5 billion in what was the biggest tech IPO in the U.S. since 2021. The AI cloud infrastructure company now trades on the Nasdaq Exchange as CRWV. CoreWeave's offering valued it at about $20 billion, highlighting continued interest in AI names. Still, Gabriela Borges – a Goldman Sachs analyst – remains 'neutral' only on a high-flying artificial intelligence company, Palantir (PLTR). Her $80 price target on PLTR signals potential downside of more than 10% from its previous close. Palantir stock is currently up well over 30% versus its year-to-date low. Palantir Stock Is Egregiously Overvalued Gabriela Borges continues to see Palantir as a distinguished name in the AI applications space. It's just the valuation tied to the data analytics firm that doesn't sit well with her. Palantir stock is currently going for more than 280 times its estimated earnings for 2025 versus 30 times for Microsoft (MSFT). Even the AI darling itself, Nvidia (NVDA), is priced at about 28 times forward at the time of writing. PLTR's high valuation is a significant concern particularly because experts are now projecting a tariffs-driven recession in the U.S. by the end of 2025. Overvalued stocks are often more sensitive to economic slowdowns, as they make it incrementally more difficult for these companies to meet inflated expectations. Plus, the Federal Reserve may not be able to lower interest rates this year if it sees undeniable signs of a recession ahead, which could further make high-flying names like Palantir less attractive for investors. Wall Street Is Keeping Cautious on PLTR Shares Goldman Sachs is cautious on Palantir stock also because President Donald Trump has recently hinted at a significant potential decline in defense spending over the next five years. If implemented, the defense budget cuts could prove a material headwind for PLTR, given defense contracts are a major source of revenue for the Denver-headquartered firm. In 2024, the Department of Defense contributed about 17% to Palantir's overall revenue. Note that Gabriela Borges is not the only analyst that's currently reserved on Palantir shares. Wall Street has a mean target of about $84 on PLTR, which is roughly in line with its current trading price.
