Emily Dattilo

Palantir Technologies stock has flown too far too fast, Jefferies argued on Tuesday.

Palantir stock fell 0.5% to $86.90 in premarket trading Tuesday. Over the last 12 months, shares of the data-analytics company have rocketed more than 200% on investor enthusiasm for artificial intelligence.

Analysts led by Brent Thill, who rate Palantir stock at Underperform with a price target of $60, tuned into the company's AI platform customer event. They were impressed with a slate of return-on-investment case studies -- including Walgreens Boost Alliance and Heineken Holding -- showing how Palantir products are helping transform businesses.

Walgreens, for instance, said that with Palantir technology, it "created AI-driven workflows for real-time labor allocation decisions" that boosted operational efficiencies.

"This positive momentum is baked into PLTR's valuation at 45x CY26E, the most expensive stock in our coverage," the Jefferies analysts wrote. "Fundamentals have been strong, but valuation remains the biggest concern, and insiders continue to sell with co-founder Stephen Cohen selling another $310M in shares over the past few days."

Write to Emily Dattilo at emily.dattilo@dowjones.com

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March 18, 2025 08:20 ET (12:20 GMT)

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