Palantir Technologies (PLTR) stock has rallied nearly 78% year-to-date, as investors are confident about the company’s growth story, supported by artificial intelligence (AI) tailwinds. While several analysts acknowledge the company’s solid execution in delivering strong AI-led growth in recent quarters, some argue that PLTR stock is overvalued at current levels. Additionally, macro uncertainties amid tariff pressures could impact Palantir’s business. Overall, Wall Street’s consensus indicates a cautious stance, with a possible downside risk at current levels.
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Palantir Impresses with Solid Fundamentals
Palantir has delivered robust growth rates in recent quarters, proving that it is well-positioned to grow both its government and commercial businesses. In Q1 2025, the company’s revenue grew by 39%, while adjusted EPS (earnings per share) jumped 62.5% year-over-year. Given the solid momentum in Q1 2025, Palantir raised its full-year outlook and guided for revenue growth of 36%.
In Q1 2025, the company closed 139 deals worth at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million, reflecting robust traction for its products. Notably, Palantir is optimistic about continued demand for its AIP (Artificial Intelligence Platform) offering.
Palantir has a strong financial position, with cash, cash equivalents, and short-term U.S. Treasury securities of $5.4 billion and zero debt as of the end of the first quarter.
Analysts Are Divided on PLTR Stock
Many analysts contend that Palantir’s solid growth expectations are already priced into the stock. In particular, PLTR stock is trading at a forward Price-to-Sales (P/S) multiple of 81.4x, compared to the sector average of 3.2x and a forward Price-to-Adjusted Earnings (P/E) of 230.9x, which is significantly above the sector average of 24.5x.
Recently, Citi analyst Tyler Radke reiterated a Hold rating on Palantir stock with a price target of $115 after meeting with the company’s CFO Dave Glazer. The 4-star analyst noted that the company is confident about the adoption of its AIP offering. While Radke expects growth in Palantir’s government business to remain strong and is upbeat about the company’s fundamentals, he continues to have concerns about PLTR stock growing into its lofty valuation, especially if the magnitude of positive revisions slows or large contracts like the Golden Dome don’t materialize as expected.
Meanwhile, Loop Capital analyst Mark Schappel increased the price target for Palantir stock to $155 from $130, while maintaining a Buy rating following an investor meeting. The 5-star analyst stated that he came away from the meeting with increased conviction in the company’s growth. Schappel called Palantir an early software leader in enterprise AI, which is at a tipping point as small-scale pilots progress into production and AI use cases grow exponentially across all industries.
Is PLTR a Good Stock to Buy?
Overall, Wall Street is sidelined on Palantir Technologies stock, with a Hold consensus rating based on three Buys, nine Holds, and four Sell recommendations. The average PLTR stock price target of $105.29 indicates a downside risk of about 22% from current levels.
