Palantir Technologies: Strong Fundamentals Amid High Valuation – Hold Rating Maintained

Raymond James analyst Brian Gesuale has maintained their neutral stance on PLTR stock, giving a Hold rating today.

Brian Gesuale has given his Hold rating due to a combination of factors that highlight both strengths and potential risks for Palantir Technologies. The company has shown impressive performance with strong results and guidance that exceeded expectations, particularly in the U.S. commercial sector, which saw a significant increase in growth. The momentum in AI and demand across various markets have also contributed to a positive outlook.
However, despite these strong fundamentals, the stock’s substantial year-to-date gains and high valuation multiples suggest that it may need to consolidate its recent performance. The stock is trading at a much higher multiple compared to historical averages, which indicates that while the fundamentals are strong, the current price may already reflect these positives. Therefore, Gesuale maintains a Hold rating, suggesting that investors should wait for the stock to grow into its valuation before considering further action.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $98.00 price target.