Jefferies Slaps a Sell Rating on Palantir (PLTR) Despite Strong AI Momentum and Impressive ROI

Palantir Technologies (NYSE: PLTR) is facing fresh skepticism from Wall Street, as Jefferies’ five-star analyst Brent Thill reaffirmed his Sell rating on the stock, maintaining a $60 price target. Despite acknowledging Palantir’s impressive AI progress, Thill believes the stock’s lofty valuation and ongoing insider selling make it a risky bet for investors.

Jefferies Sees Palantir as Overvalued Despite AI Strength

Following Palantir’s sixth AI Platform (AIP) customer event, Jefferies analysts came away impressed by the company’s strong ROI case studies, showcasing how its AI-powered tools are transforming businesses. The event highlighted how companies are using Palantir’s AI suite to streamline operations, automate tasks, and enhance efficiency, driving measurable returns.

Thill praised the platform’s effectiveness, writing:

“We tuned into PLTR’s sixth AI Platform customer event and were impressed with the ROI case studies showcasing how its products are helping transform businesses.”

However, despite Palantir’s AI momentum, Jefferies argues that the stock’s current price already reflects these strengths, making it the most expensive stock in their coverage. The firm warns that further upside may be limited due to the premium valuation.

Insider Selling Raises Red Flags

Jefferies also flagged insider selling as a growing concern. Palantir co-founder Stephen Cohen recently sold an additional $310 million worth of shares, raising questions about the stock’s future trajectory. Ongoing insider sales could signal caution, indicating that executives may view the stock as overvalued.

Wall Street Remains Cautious on Palantir

Despite the company’s AI-driven growth, Wall Street analysts remain cautious. Palantir holds a Hold consensus rating based on:

• 4 Buy recommendations
• 10 Hold ratings
• 4 Sell ratings

The average price target for PLTR stands at $94.27, implying only a 7.92% upside from current levels. This muted growth outlook reflects broader concerns about Palantir’s rich valuation and the potential downside from continued insider selling.

Brent Thill’s Track Record Adds Weight to the Call

Brent Thill, ranked 868 out of 9,416 analysts tracked by TipRanks, has a 54% success rate with an average return of 6.6% per rating over the past year. His cautious stance on Palantir signals a measured approach from a seasoned analyst.