Palantir’s stock has surged 35% year-to-date, but analysts remain cautious due to the company’s high valuation. Despite strong fourth-quarter earnings results and upbeat 2025 guidance that beat analyst estimates, many experts believe Palantir will struggle to grow into its premium valuation.
Only four buy ratings out of 25 bullish calls from major firms like Snowflake have analysts optimistic about Palantir’s long-term prospects. Even after a blockbuster earnings report, some bears are skeptical, citing high valuations as the main concern.
Analysts at Deutsche Bank and Jefferies argue that Palantir’s valuation is nearly impossible to sustain due to its scale. The company’s premium valuation exceeds triple the revenue multiple of the next most expensive stock in their coverage.
Jefferies analysts note that Palantir would need to grow at an incredible rate through the end of the decade to justify its current stock price, and even then, it would remain one of the most expensive stocks in software. They also question the company’s sales tactics, citing a “very limited sales force” despite strong growth.
Goldman Sachs analysts are more neutral but still not bullish on Palantir due to high valuations. However, they acknowledge the company’s differentiated technology and expect momentum to continue into 2025.
Overall, while Palantir’s stock has seen significant gains, many analysts remain cautious about its long-term prospects due to its premium valuation.
Source: https://markets.businessinsider.com/news/stocks/palantir-stock-price-wall-street-valuation-analyst-view-ai-pltr-2025-2