Palantir bear: Valuation “nearly impossible to grow into”
Palantir’s results earned a tip of the cap even from analysts deeply skeptical of the current stock price. (There are many.) Deutsche Bank’s Brad Zelnick, who has a sell rating on the stock, acknowledged the strong numbers, calling them “very impressive.” He wrote:
“It does seem for now that Palantir is impressing with its consultative, one-stop-shop value proposition in delivering applications that not only leverage LLMs but have inherent strength in bringing together disparate enterprise data to power them, in secure fashion.
At this point, our issue with the stock really boils down to valuation.”
In other words, Palantir is developing into a healthy, growing software business with respectable profit margins. The key question is: what should shareholders pay for such a business? Right now, Zelnick says, the market is paying too much.
“PLTR’s shares are trading at ~50x an upside CY26 revenue, which history suggests is nearly impossible to grow into, especially at this scale.”
Zelnick did raise his price target for the shares to $50, from $35. (The shares are trading at over $105 as of 11:05 a,m. ET.) He maintained his “sell” rating on Palantir.
