Palantir Technologies (PLTR) stock has rallied more than 88% year-to-date and by an amazing 401% over the past year. While PLTR bulls see continued upside in the stock, driven by the demand for the data analytics company’s artificial intelligence (AI)-powered offerings, other analysts are concerned about its lofty valuation and notable share-based compensation. Although investor enthusiasm about PLTR stock remains upbeat, Wall Street’s average price target indicates a possible downside from current levels.
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Notably, PLTR stock is trading at a forward P/S (price-to-sales) ratio of 86.7x, way above the sector average of 3.2x.
Analysts Have Mixed Views of PLTR Stock
Palantir has been impressing investors with solid revenue growth rates, expanding margins, and enhanced profitability. The company’s market-beating Q1 results and robust demand for its innovative offerings, like AIP (artificial intelligence platform), have helped reinforce investors’ confidence. Palantir expects to deliver revenue growth of 36% for full-year 2025 and 68% for the U.S. commercial business.
On Thursday, Wedbush analyst Daniel Ives raised the price target for PLTR stock to $160 from $140 and reiterated a Buy rating, citing recent checks and rising confidence in the company’s AI strategy. The top-rated analyst believes that PLTR has a “golden path” to become the next Oracle (ORCL) in the coming years. Ives contends that while PLTR’s valuation is expensive, he views the “Messi of AI” as a core winner that can capture trillions of AI spend in the years ahead. Furthermore, he believes that Wall Street is underestimating the ability of PLTR’s AIP U.S. commercial business to grow into a more than $1 billion revenue stream in the next few years.
Meanwhile, Citi analyst Tyler Radke has a Hold rating on PLTR stock with a price target of $115. Following meetings with management, the 4-star analyst noted that the company remains upbeat on AIP adoption. In particular, he highlighted strong demand from Financial Services customers following the Q1 contract with Citi (C) Wealth. Radke noted that management is confident about continued strength in Government business, with the Golden Dome program providing an attractive opportunity.
However, Radke highlighted that the momentum in PLTR’s International revenue is a mixed bag, as the NATO deal and opportunities in the Middle East are offset by challenges in the European commercial business. While Radke acknowledges the company’s solid fundamentals, he remains concerned about how PLTR stock can justify its elevated valuation, especially if the “magnitude of positive revisions slow or large contracts (i.e., Golden Dome) don’t materialize as expected.”
Is PLTR a Good Stock to Buy?
Overall, Palantir Technologies stock scores a Hold consensus rating from Wall Street, based on four Buys, nine Holds, and four Sell recommendations. The average PLTR stock price target of $109.60 indicates a downside risk of 23.1% from current levels.
