Palantir’s Valuation ‘Doesn’t Make Any Sense,” Warns Analysts. Should You Still Buy PLTR Stock Before May 5?

Palantir (PLTR) is not growing at a fast-enough pace for its shares to command a forward price-earnings multiple of more than 350x, says Brent Thill, a senior analyst at Jefferies. Expectations are for the big data analytics firm to double its earnings on a year-over-year basis to $0.08 per share in its fiscal Q1. www.barchart.comWhile that establishes PLTR as an “incredibly well-run company” with strong fundamentals, its valuation still “doesn’t make sense” at writing, Thill told clients in a research note on Friday. Palantir’s Multiple Is Alarmingly HighPalantir is currently going for nearly 70 times its estimated sales for 2025. That’s at least double compared to any other stock in the S&P 500 Index ($SPX) at writing. “If it went to the second-most expensive software multiple today, that would be a $40 stock,” the Jefferies analyst added in his report. Brent Thill currently has an “Underperform” rating on PLTR shares with a price target of $60 that indicates potential downside of more than 50% from current levels. Note that Palantir stock has rallied nearly 70% in the year to date in the build up to its Q1 results on May 5. www.barchart.comPLTR Shares Are Even Riskier Ahead of a RecessionAccording to Brent Thill, if Palantir manages to grow at an annualized rate of a spectacular 50% over the next five years, “it would still be the most expensive name in software” in 2030. Overvaluation is a particularly big concern for Palantir stock this year as President Donald Trump’s new tariffs are threatening to push the U.S. economy into a recession in the back half of 2025. Stocks with elevated price-earnings multiples often take a bigger hit as investors turn to safer assets like bonds and earnings contract during challenging times. Wall Street Recommends Sitting Palantir Out Several other Wall Street analysts also agree that Palantir stock has gone a bit too far ahead of the quarterly release on May 5. The consensus rating on PLTR shares currently sits at “Hold” only with the mean target of $84 signalling potential downside of more than 30% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.