William Blair analyst Louie DiPalma has reiterated their bearish stance on PLTR stock, giving a Sell rating on January 30.
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Louie DiPalma has given his Sell rating due to a combination of factors, primarily focusing on Palantir Technologies’ valuation and future growth prospects. The company’s recent revenue and operating income exceeded expectations, and its software products, Foundry and Gotham, are gaining traction. However, Palantir’s stock is currently valued at a significant premium compared to its peers with similar business fundamentals.
Despite the positive momentum and the potential impact of developments like artificial intelligence and political changes, the risk of valuation multiple compression, similar to what occurred in 2021 and 2022, remains a concern. This potential market correction, alongside the company’s revised revenue guidance for 2025 that falls short of previous targets, contributes to the decision to maintain the Sell rating.
DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, SoundThinking Inc, and Rekor Systems. According to TipRanks, DiPalma has an average return of -15.4% and a 55.14% success rate on recommended stocks.
In another report released on January 30, Jefferies also maintained a Sell rating on the stock with a $28.00 price target.
