Palantir Technologies (PLTR) blowout financial results weren’t enough to convince analysts at Citigroup (C) that the stock is a Buy.
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Tyler Radke, a top five-star rated analyst at Citigroup in New York, reiterated a Hold-equivalent neutral rating on PLTR stock, saying he still has reservations about the data analytics firm. Radke did raise his price target on Palantir’s shares to $110 from $42 previously. The new price target is about 5% higher than where the stock currently trades.
Radke’s tepid rating on Palantir comes a day after the company reported blockbuster financial results for the fourth quarter of 2024, sending the share price up 24% to a record high of $103.83. While Radke acknowledged that Palantir’s print was “impressive,” he said that he remains concerned about the tech company’s valuation with the stock trading at more than 500 times future earnings estimates.
AI-Driven Growth
“While metrics point to inflecting AI growth, we could get more constructive if PLTR showed sustainable levels of upside revisions,” wrote Radke in his assessment of the stock. “There was likely some non-repeatable budget flush in Q4 and now hitting softer Q1 seasonality.”
The rise in Palantir’s share price is largely due to the company’s suite of artificial intelligence (AI) products, which are driving “unprecedented demand,” according to management. However, Radke notes that Palantir’s updated regression implies an enterprise value-to-sales multiple of 56 times for 2026, and that the return profile for software companies trading above 50 times forward EV/sales “hasn’t been good.”
PLTR stock has risen 363% in the last 12 months.
Is PLTR Stock a Buy?
Palantir Technologies stock has a consensus Hold rating among 18 Wall Street analysts. That rating is based on two Buy, 11 Hold, and five Sell recommendations issued in the last three months. The average PLTR price target of $88.60 implies 12.47% downside risk from current levels.
