Palantir's discounted valuation "underappreciates" its momentum, government opportunity, and a strong shift to software sales, Morgan Stanley said. : Morgan Stanley analysts initiated coverage of Palantir shares with an "overweight" rating on Monday, saying the firm is currently undervalued as investors fail to realize its full potential. The data-mining firm's shares haven't met investors' lofty hopes in their first month of trading. The stock closed at $9.95 on Monday, still below the $10 level Palantir first began trading at. The underwhelming performance could simply be a result of unfair discounting, Morgan Stanley said in a note to clients.