AI-powered data analytics company Palantir Technologies (PLTR) has fallen about 14% over the past month and 5% in the past five days despite reporting strong Q3 results. On Tuesday, Cathie Wood’s ARK fund sold 354,955 shares worth roughly $58 million, drawing fresh attention to a stock already facing pressure. Political headlines have also added to the noise. Recent reports tying Palantir to U.S. Vice President J.D. Vance have raised new questions about whether the company’s growing role in government AI could pose risks for investors.
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Along with these concerns, Palantir’s valuation remains a sticking point. The stock currently trades at a steep forward P/E of 224.1x, far above the sector average of 22.6x. Given the premium pricing and rising uncertainty, many on Wall Street remain cautious on the stock.
Analysts’ Views on Palantir Stock
Recently, Freedom Capital Markets analyst Almas Almaganbetov raised his price target on Palantir to $170 from $125, while keeping a Sell rating. The analyst acknowledged Palantir’s strong Q3 results and rising demand. He said the beat showed clear progress in the U.S. market and faster adoption of its AI platform. However, he argued the stock already prices in several years of strong growth, leaving little room for error at current levels.
Looking past next year, he sees more uncertainty. The analyst noted U.S. commercial growth could cool after an unusually strong year, government budgets may tighten, and ongoing hiring to support AI could pressure margins.
Similarly, Cantor Fitzgerald analyst Thomas Blakey also lifted his price target on Palantir to $198 from $155, but kept a Hold rating. The 5-star analyst raised his target after boosting his revenue and profit forecasts following the strong quarter. Still, he remains cautious due to valuation, noting that Palantir trades at roughly five times the median multiple of other infrastructure software names in his coverage.
Is PLTR a Good Stock to Buy?
According to TipRanks consensus, PLTR stock has a Hold rating, based on three Buys, 11 Holds, and two Sells assigned in the last three months. The average Palantir share price target is $187.87, which implies an upside of 15% from current levels.
