Palantir valuation unsustainable, says RBC Capital

RBC Capital keeps an Underperform rating and $45 price target on Palantir (PLTR) ahead of its Q3 results. Retail investors may be starting to become frustrated by the absence of some form of capital returns, and a further lack of clear strategy on this front, in addition to rising concerns around privacy and ethics, could lead to multiple compression, the analyst tells investors in a research note. RBC adds that its checks remain skeptical on the commercial side, suggesting ongoing churn discussions among enterprise clients, also stating that in the absence of a substantial beat-and-raise quarter elevating the near-term growth trajectory, Palantir’s valuation “seems unsustainable”.