Palantir Technologies: Sell Rating Due to Valuation Concerns Despite Strong Performance

Mizuho Securities analyst Gregg Moskowitz has reiterated their bearish stance on PLTR stock, giving a Sell rating today.

Gregg Moskowitz has given his Sell rating due to a combination of factors related to Palantir Technologies’ valuation concerns. Despite the company’s impressive quarterly performance and strong guidance, Moskowitz highlights that the stock’s current trading levels are near all-time highs, which were last seen before previous market selloffs. The valuation of Palantir is seen as a significant hurdle, with the stock trading at a very high multiple of 60 times the estimated revenue for 2026, which Moskowitz believes already accounts for substantial growth beyond consensus expectations.
While acknowledging Palantir’s strong execution and strategic positioning, particularly in the US government and commercial sectors, Moskowitz remains cautious. He notes that the company’s revenue beat was less pronounced compared to previous quarters, and the international commercial business is underperforming. Although the management has raised its revenue and profit guidance significantly, Moskowitz finds it challenging to justify the premium valuation, leading to the reiteration of an Underperform rating, albeit with an increased price target from $80 to $94.

In another report released today, Jefferies also maintained a Sell rating on the stock with a $60.00 price target.