Shares of Palantir Technologies (PLTR) have soared over 130% year-to-date, fueled by investor excitement around the company’s AI-driven data analytics platform. However, TipRanks’ A.I. Stock Analysis is urging investors to exercise caution, citing uncertainties around valuation and international growth. Meanwhile, traditional analysts remain divided on PLTR stock, rating it as a Hold.
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For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential.
Palantir Earns Outperform Rating
According to TipRanks’ A.I. Stock Analysis, PLTR stock still earns an Outperform rating due the company’s long term potential. It sets a price target at $171, which implies a 4.53% downside. Palantir’s score reflects strong financial results and positive sentiment from its recent earnings call. However, the high P/E ratio signals potential overvaluation. Notably, PLTR’s P/E ratio stands around 600, compared to the sector average of 30.89.
AI Analyst Breaks Down Stock’s Strengths and Risks
TipRanks’ tool highlights both the positive and negative factors influencing the company’s stock performance. Among the positives, Palantir has shown strong revenue growth, especially in the U.S., highlighting solid demand for its products and potential for continued expansion. Notably, Palantir’s Q2 revenue reached $1 billion, marking a 48% year-over-year increase. Looking ahead, the company now expects revenue of $4.142–$4.150 billion, up from its earlier guidance of $3.89–$3.90 billion.
Additionally, the company’s remaining performance obligations (RPO) have increased, showing strong demand and strategic growth, especially in the U.S. market. For context, RPO shows the future revenue the company has signed, giving investors insight into expected growth and demand for its products or services. Below is a screenshot for reference.
Speaking of negatives, Palantir has faced a decline in international revenue, highlighting challenges in expanding beyond the U.S. At the same time, U.S.-based Databricks’ rapid growth and strong presence in the data and AI space increase competitive pressures for Palantir.
Is PLTR a Good Stock to Buy Now?
On Wall Street, analysts are divided on PLTR, citing strong growth potential but cautioning on high valuation and volatility.
According to TipRanks consensus, PLTR stock has a Hold rating, based on five Buys, 12 Holds, and two Sells assigned in the last three months. Meanwhile, Palantir share price target is $159.47, which implies a downside of 11% from current levels.
