Citi: Palantir priced for “beyond perfection”
Analysts at Citi raised their estimates and price target on Palantir, but they still won’t push the buy button.
The reason, of course, is valuation, which has emerged as a sticking point for others, judging by the sharp sell-off the stock endured despite reporting results that were widely hailed on Wall Street as quite strong.
In raising their target price from $110 to $115, Citi analysts concurred, as far as the numbers were concerned. But they still couldn’t get comfortable with the remarkably high multiple that the market is putting on the stock. In a note published May 7, they wrote:
“While all very impressive fundamentals, we see the stock as priced for ‘beyond perfection’ at 55x full year 2026, [on an enterprise value-to-sales ratio] and with tougher comps (let alone a tough macro) likely to drive slowing growth in the second half of 2025 and into full-year 2026.”
This high valuation issue is a pretty standard sticking point for Wall Street analysts covering the shares. Just seven of the 27 covering the stock — or 26% — have a “buy” or “overweight” rating on the stock, which is very much in the hunt to be the top performer in the S&P 500 for the second year in a row.
