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Goldman Sachs sets cautious $80 target for Palantir amid AI market shifts
Goldman Sachs maintains an $80 price target for Palantir, indicating a potential downside of over 10% from its previous close, despite the stock being up over 30% from its year-to-date low. Analyst Gabriela Borges expresses concerns over Palantir's high valuation, trading at over 280 times estimated earnings for 2025, compared to 30 times for Microsoft and 28 times for Nvidia. Additionally, potential defense budget cuts and a projected tariffs-driven recession could pose significant challenges for the company, which relies heavily on defense contracts for revenue.
Palantir shares decline as Goldman Sachs maintains neutral rating and price target
Palantir Technologies (PLTR) shares fell nearly 6% to $84.91 after Goldman Sachs analyst Gabriela Borges maintained a 'Neutral' rating with an $80 price target. While praising Palantir's AI Platform and ontology for their data integration capabilities, Borges expressed concerns over the company's high valuation and uncertainty regarding the simplification of custom AI processes.
Goldman Sachs maintains neutral rating on Palantir with $80 price target
Goldman Sachs has reiterated a Neutral rating for Palantir Technologies, maintaining a price target of $80 following a recent visit to the company's New York office. Despite Palantir's impressive gross profit margins and strong revenue growth, uncertainties regarding the simplification of custom AI workflows and high valuation metrics contribute to this cautious stance.Palantir is actively pursuing strategic partnerships, including collaborations with Everfox to enhance defense data solutions and R1 to establish an AI lab aimed at reducing healthcare costs. The company has also secured six new clients for its Warp Speed software, reinforcing its commitment to leveraging AI across various sectors.
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