William Blair analyst Louie DiPalma has maintained their neutral stance on PLTR stock, giving a Hold rating on April 25.
Louie DiPalma has given his Hold rating due to a combination of factors influencing Palantir Technologies’ current market position. Despite the company reporting revenue and operating income above consensus, the shares have seen a decline of 8%, reflecting investor concerns. The revenue growth showed an increase from 36% to 39%, but the operating margin experienced a slight decrease from 45% to 44%, which may have tempered investor enthusiasm.
While Palantir has raised its guidance for 2025 in terms of revenue, operating income, and free cash flow, the modest full-year revenue guidance increase and a decline in international commercial revenue year-over-year have left some investors disappointed. The stock’s high valuation, trading at 64 times sales compared to peers, makes it susceptible to multiple compression if revenue growth slows. Additionally, the potential for market sell-offs could further impact the stock’s performance, leading to the expectation that shares will remain range-bound in the near term.
In another report released on April 25, UBS also reiterated a Hold rating on the stock with a $105.00 price target.