Home / Business and Economy / Palantir Stock: Sell Rating Maintained Despite Price Target Hike
Palantir Stock: Sell Rating Maintained Despite Price Target Hike
21 Nov
Summary
- Freedom Capital raised Palantir's price target to $170, maintaining a 'Sell' rating.
- Palantir saw strong Q3 growth driven by US Commercial and AI adoption.
- Valuation risks and potential growth slowdown temper outlook despite near-term momentum.
Freedom Capital has adjusted its outlook on Palantir Technologies (NASDAQ:PLTR), raising the price target to $170 from $125, yet maintaining a 'Sell' recommendation. The firm cited strong third-quarter results, particularly a surge in US Commercial growth driven by record bookings and the adoption of its AI platform, as reasons for the target increase. Despite this performance, the firm remains cautiously bearish.
Despite Palantir's impressive Q3 upside, European operations have remained flat. Management has provided Q4 guidance exceeding investor expectations. However, apprehension exists among investors concerning potential defense budget pressures, challenges associated with AI-driven hiring, and an anticipated deceleration in US commercial growth following a record year.
The firm's maintained 'Sell' rating reflects a belief that the stock's elevated valuation implies a level of hypergrowth that may not be sustainable indefinitely. While acknowledging Palantir's potential, alternative AI stocks are suggested to offer greater upside with reduced downside risk.
