William Blair analyst Louie DiPalma has maintained their neutral stance on PLTR stock, giving a Hold rating today.
Louie DiPalma has given his Hold rating due to a combination of factors that balance both the potential upside and downside risks associated with Palantir Technologies. On the positive side, Palantir’s recent agreement with NATO to use its Maven Smart System highlights its strategic importance and potential for growth in the defense sector. This deal underscores the company’s ability to secure significant contracts, which could lead to increased revenue and market presence, especially as defense budgets in Europe are expected to rise.
Despite these promising developments, DiPalma remains cautious due to the high volatility of Palantir’s stock, which is closely tied to the performance of the Nasdaq-100. Given the current market conditions, if the Nasdaq-100 experiences a downturn, Palantir’s stock could potentially decline at a rate three times greater than the market. This high beta correlation presents a significant risk, prompting a Hold rating as investors weigh the potential for growth against the likelihood of market-driven fluctuations.
DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Motorola Solutions, and Parsons. According to TipRanks, DiPalma has an average return of -19.1% and a 50.00% success rate on recommended stocks.
In another report released today, Northland Securities also maintained a Hold rating on the stock with a $80.00 price target.