Goldman Sachs Doubles Palantir (PLTR) Stock’s Price Target but Keeps a Hold Rating

Big data analytics company Palantir Technologies (PLTR) saw its price target double to $80 from $41 by Goldman Sachs analyst Gabriela Borges. However, Borges prefers to remain on the sidelines with a “Hold” rating on Palantir stock owing to its sky-high valuation. The revised price target also implies 21.1% downside risk from current levels, aligning with Borges’ valuation concerns.

Meanwhile, CEO Alex Karp believes that Palantir is just getting started and is on the way to a solid revolution that will play out for years together.

Here’s Why Goldman Sachs Remains a Hold on PLTR Stock

Borges was indeed impressed with Palantir’s solid revenue growth (36% year-over-year) reported in the fourth quarter results. She also expects the growth momentum to continue this year. Additionally, Borges is encouraged by Palantir’s efforts to improve its efficiency and the adoption of its technology offering, particularly by the U.S. government. Yet, she believes that PLTR currently trades at a very steep valuation and remains cautious about the stock’s trajectory.

Borges’ current price target of $80 is based on the EV/Sales (enterprise value/sales) multiple of 55x, which is one of the highest in the industry.

Northland Securities analyst Michael Latimore also shares similar views on Palantir stock. The five-star analyst also assigned a Hold rating but lifted the price target to $80 from $38 on Palantir.

Is Palantir Stock a Good Buy?

Analysts are becoming cautious of Palantir stock’s expensive valuation. On TipRanks, PLTR stock has a Hold consensus rating based on two Buys, 11 Holds, and five Sell ratings. Also, the average Palantir Technologies price target of $88.60 implies 12.6% downside potential from current levels. In the past year, PLTR stock has zoomed over 363%.

See more PLTR analyst ratings

Disclosure