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Palantir (NYSE:PLTR) stock is in the spotlight today after the firm announced yesterday that it had signed a new, aritificial intelligence ( ) related partnership with Coles Group. Under the deal with Coles — one of Australia’s largest retailers — Palantir’s AI platform will be deployed in “more than 850 stores.”
Coles Group will utilize multiple “workforce strategy and analytics tools” developed by Palantir during the three-year term of the deal. Reportedly, the technology will “improve workforce planning and shift efficiency” as well as give Coles Group a “deeper understanding of spending patterns to enhance customer experiences.”
In a statement, Coles Chief Operations and Sustainability Officer Matt Swindells said that Palantir’s tools and Foundry platform will allow the retailer “to respond more dynamically to ever-changing trading conditions and customer needs.”
PLTR Stock: A Recent Downgrade
News of this new partnership aside, investment bank Jefferies cut its rating on PLTR stock to “underperform” from “hold” on Jan. 5. Analyst Brent Thill believes that the firm does have a long-term edge in AI but that its ability to monetize and obtain revenue from AI is still uncertain looking forward.
Moreover, Jefferies contends that the valuation of PLTR shares is “unsustainable.” Thill also believes that investors will be worried about Palantir’s ability to increase its top line. Jefferies placed a $13 price target on PLTR stock, which is well below its current price of around $16 per share.
As of this writing, PLTR stock is up less than 1% for the past one month and down more than 10% for the past six months. However, shares are up more than 80% for the past 12 months.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.