A Wall Street analyst is projecting that Palantir (NASDAQ: PLTR) stock may see a minor pullback, citing concerns about the company’s elevated valuation.
Gregg Moskowitz of Mizuho, in a note to investors on September 15, reiterated a ‘Neutral’ rating on Palantir while maintaining a price target of $165. This suggests a potential downside of about 3.8% from the stock’s current level of $171.
The update comes after Moskowitz attended a recent product demo, where Palantir showcased its Ontology platform, AI-enabled developer tools, and mission-critical decision-making capabilities.
He highlighted the company’s strong execution, pointing to notable upward revisions across both commercial and government segments.
However, despite these positives, the analyst flagged Palantir’s extreme valuation, noting that shares continue to trade at a significant premium compared to peers in the software sector.
As such, he cautioned that the stock could face a potential multiple reversion in the coming quarters, even though Palantir remains uniquely positioned to benefit from long-term trends in artificial intelligence.
Wall Street remains cautious on PLTR stock
Beyond Mizuho’s outlook, Wall Street remains divided on the stock. Data from 19 analysts over the past three months shows a consensus rating of ‘Hold’, with 4 recommending ‘Buy’, 13 advising ‘Hold’, and 2 suggesting Sell.
The average 12-month price target stands at $154.47, implying a potential downside of nearly 10% from current levels. Forecasts tracked by TipRanks vary widely, with the most bullish analyst seeing Palantir climbing to $200, while the most bearish projects a drop to $45.
Indeed, several analysts have warned of potential risks, noting that if Palantir fails to meet its growth targets, the stock could reverse sharply. Still, the company is banking on its government contracts and expanding the commercial segment to drive revenue growth as it advances deeper into the artificial intelligence space.
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