Palantir Technologies Inc (NYSE:PLTR) is trading higher Monday after Morgan Stanley analyst Keith Weiss upgraded the stock from an Underweight rating to an Equal-Weight rating and lowered the price target from $24 to $16.
Weiss cited Palantir's well positioned government business, significant commercial unit potential and strong unit economics as reasons for the upgrade.
Despite Palantir's high growth and strong cash flow generation, the stock still trades at a discount to its peers, according to the Morgan Stanely analyst.
Weiss now believes the risk/reward opportunity in the stock has shifted towards "neutral to positive territory."
Palantir provides organizations with solutions to manage large disparate data sets in an attempt to gain insight and drive operational outcomes.
PLTR 52-Week Range: $9.74 - $29.29
Palantir shares were up 2.33% at $11.21 at time of publication.
Photo: Cory Doctorow from Flickr.
