Palantir Stock: Rising Expectations and Price Target

Analysis of Palantir Technologies Stocks

Palantir Technologies Inc. (NASDAQ:PLTR) stands out among the artificial intelligence stocks to watch on Wall Street. Citi rated the stock as 'Neutral' on October 28 and raised its price target from $177 to $190 ahead of the earnings period. The firm expects Palantir to announce strong third-quarter results following positive channel checks in government and commercial business segments.

In the evaluations, it was noted that discussions with partners and clients have been positive. Particularly, feedback from the Oracle and Snowflake conferences indicates an increase in collaboration agreements.

On the other hand, RBC maintained its 'Underperform' rating for the stock, setting a price target of $45. RBC states that Palantir’s premium valuation does not appear sustainable and that the stock's value is at risk unless it provides significant revenue growth.

“Ahead of third-quarter earnings, we are maintaining our 'Underperform' rating and $45 price target for Palantir. We believe the risk/reward balance for the stock price is negative. In the past three months, PLTR shares have gained approximately 20%, while the IGV has seen about a 4% increase. Ahead of third-quarter earnings, RBC tracks Palantir as one of three names with an EV/CY26E revenue multiple of over 20 among All-SaaS names. We cannot rationally explain why Palantir is the most expensive stock in our software coverage. If it has a quarter without significant revenue growth, the valuation does not appear sustainable.”

Palantir Technologies Inc. is one of the leading providers of artificial intelligence systems. While we recognize the investment potential of PLTR, we believe that some artificial intelligence stocks have greater upward potential and carry less downside risk.