Wall Street giant Citi has raised concerns over Palantir Technologies (PLTR), warning that the stock’s sky-high valuation is “priced for beyond perfection.” With investor enthusiasm running hot, Citi cautions that Palantir must deliver flawless execution and outsized results just to justify its current price, leaving little room for disappointment.
For context, Palantir delivered strong Q1 results earlier this week. But its stock dropped, losing its top spot on the S&P 500 in 2025. Despite the earnings beat, investors were rattled by its steep valuation and its modest full-year guidance, which fell short of high market expectations. As a result, several analysts have raised concerns about Palantir’s high valuation and continue to maintain a cautious stance on the stock.
Citi Maintains Hold Rating on PLTR Stock
Citi analyst Tyler Radke recently raised his price target on PLTR stock from $110 to $115 but stopped short of issuing a Buy rating. While he acknowledged the company’s strong Q1 results, Radke remains cautious due to Palantir’s steep valuation, which he believes is difficult to justify given the premium the market is placing on the stock.
He added that the stock looks extremely overvalued, trading at 55 times its expected 2026 sales. That’s a very high bar. With the economy slowing and tougher year-over-year comparisons ahead, growth may cool in the second half of 2025 and into 2026.
Furthermore, Radke pointed out that Palantir is working on improving its products and using technology to cut costs. But since expenses and income may change from quarter to quarter, especially due to taxes and spending, it’s wise for investors to stay cautious.
Is PLTR a Good Stock to Buy?
Overall, Wall Street has a Hold consensus rating on PLTR stock, based on three Buys, 11 Holds, and four Sells assigned in the last three months. The average Palantir share price target is $98.56, which implies a downside potential of 17.28% from current levels.
Year-to-date, PLTR stock has gained 57%.
