4.6-star Wedbush analyst Dan Ives is a big fan of tech stock Palantir (PLTR). In fact, he even called it the “Messi of AI” (referring to the professional soccer player Lionel Messi) due to his belief that AI spending will surge in 2025. As a result, Ives currently has a Buy rating with a price target of $75 per share, the highest on Wall Street, and believes the company’s growing use cases and partner ecosystem will help drive growth. However, Ives’ bullish outlook implies an 8.7% downside from current levels, which suggests that even Palantir’s biggest bull can’t justify the valuation.
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The fact is that Palantir’s stock has been on a tear, and many analysts think it’s due for a correction. Indeed, Mizuho’s five-star analyst, Gregg Moskowitz, recently said that while Palantir’s contract wins and business execution are impressive, the stock price has gotten ahead of itself. Therefore, he has placed a Sell rating with a $44 price target.
With a GAAP price-to-earnings (P/E) ratio of 417 and a price-to-sales ratio (P/S) of 69, Palantir’s stock is looking pricey compared to Nvidia’s (NVDA) P/E ratio of 55 and P/S ratio of 29. And while Palantir’s expected growth is solid, Nvidia’s outlook is even more promising, with EPS growth expected to reach 49.7% and sales growth of 52.9% – more than double that of Palantir.
Is Palantir a Buy, Sell, or Hold?
Overall, analysts have a Hold consensus rating on PLTR stock based on two Buys, eight Holds, and six Sells assigned in the past three months, as indicated by the graphic below. In addition, the average PLTR price target of $44.85 per share implies 45.4% downside risk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
