Jim Cramer Predicts Palantir Buying Surge Tonight After Morgan Stanley Underweight Rating: “Unless Another Analyst Starts Selling…” – Palantir Technologies (NASDAQ:PLTR)

Morgan Stanley Initiate coverage Palantir Technologies PLTR An underweight rating and a $60 price target prompted CNBC on Monday Jim Cramer to predict a late-day surge in buying.

What happened: “Unless another analyst starts selling, I think Palantir will start buying around 3:30 [a.m.]”, Cramer wrote on X (formerly Twitter).

Premarket trading on Nasdaq typically takes place from 4:00 a.m. to 9:30 a.m. Eastern Time.

Morgan Stanley Analyst Ratings sangeet singh The firm took over the company’s ratings after its provisional rating was suspended in November. While acknowledging Palantir’s strong performance in the U.S. commercial and government sectors, Singer expressed concerns about the stock’s valuation following a 350% rise in 2024.

“Frankly, Palantir has become one of the few partners that executive management teams and decision makers can call if they want to quickly move their AI initiatives into real production environments,” Singh said, noting the stock’s trading price for $80.

Data analytics company led by CEO Alex KarpThe company’s shares have soared nearly 350% in the past year, closing at $75.92 on Monday. However, analyst price targets currently range from $80 at UBS to Wolff LesseArch’s price is $7.50, according to Benzinga Pro.

See also: AMD unveils ‘next generation’ AI processors and gaming devices ahead of CES 2025

why it’s important: As interest from high-profile investors grows, so do differing views on Palantir’s valuation. Cramer recently described the company as a “protective intellectual blanket” for his investment club’s portfolio, underscoring its appeal in the field of artificial intelligence.

The stock’s outperformance comes on the back of strong investor sentiment and endorsements from high-profile names, including billionaires Stanley DruckenmillerPraise for Karp’s book The Republic of Technology.

However, Morgan Stanley’s analysis shows that while 2025 revenue expectations are only up 10%, the stock’s gains are largely driven by multiple expansions.

price action: Palantir shares closed at $75.92 on Monday, down 4.97%. The stock edged down 0.24% in after-hours trading, according to Benzinga Pro.

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Disclaimer: This content is generated in part with the help of artificial intelligence tools, and is reviewed and published by Benzinga editors.