Wall Street analyst updates Palantir stock price target

Core Viewpoint - A Wall Street analyst projects a minor pullback for Palantir (NASDAQ: PLTR) stock due to concerns over its elevated valuation, maintaining a 'Neutral' rating and a price target of $165, indicating a potential downside of approximately 3.8% from the current level of $171 [1]. Group 1: Analyst Insights - The analyst, Gregg Moskowitz of Mizuho, attended a product demonstration where Palantir showcased its Ontology platform and AI-enabled developer tools, highlighting strong execution and upward revisions in both commercial and government segments [3]. - Despite the positive aspects, the analyst pointed out Palantir's extreme valuation, noting that shares trade at a significant premium compared to software sector peers, which could lead to a potential multiple reversion in the coming quarters [4]. Group 2: Market Sentiment - Wall Street remains cautious on PLTR stock, with a consensus rating of 'Hold' from 19 analysts over the past three months, including 4 'Buy', 13 'Hold', and 2 'Sell' recommendations [5]. - The average 12-month price target is $154.47, suggesting a potential downside of nearly 10% from current levels, with forecasts varying widely among analysts [6]. Group 3: Growth Potential and Risks - Analysts have warned of potential risks, indicating that if Palantir fails to meet its growth targets, the stock could experience a sharp reversal; however, the company is focusing on government contracts and expanding its commercial segment to drive revenue growth in the AI space [8].