Sell Palantir Technologies before it falls more than 20% from here, according to Wolfe Research. Analyst Alex Zukin downgraded shares to underperform from peer perform, saying he is losing confidence in a business that has dwindled over the last several years. The analyst’s $4.50 price target implies more than 28% downside from Tuesday’s closing price of $6.31. “We have watched PLTR decelerate its top line by 30 points while operating margins have contracted from the mid-30% range to the midteens over the past few years with FCF on the same trajectory,” Zukin wrote in a Tuesday note. Shares of Palantir have cratered 65% in 2022, while the S & P 500 has dropped off 19.8%. Regardless, the analyst expects further downside for the company, as the “lumpiness and unpredictability” of its existing and potential government contracts “make it difficult to model and have confidence in the business,” the analyst wrote. Meanwhile, growth in the commercial business has dropped to the low double digits, down from mid-20% growth previously. “As we look at our model, we are below Street expectations and see the opportunity to make money on the short side. We model total revenue decelerating further, along with continued margin degradation in FY23 as the company continues to invest,” Zukin wrote. The stock is down 0.3% in Wednesday premarket trading. —CNBC’s Michael Bloom contributed to this report.