For years, Wolfe Research maintained a long-standing avoidance strategy on Palantir (PLTR), keeping a bearish “Underperform” rating on the stock due to concerns over its steep valuation multiples.
On Tuesday, June 16, that changed, though not by much
Wolfe analysts Alex Zukin and Joshua Tilton lifted their rating on Palantir (PLTR) to Peer Perform from Underperform, ending a long stretch of bearishness on the data and artificial intelligence software company. The move sounds bullish on its face. Zukin called Palantir the most applied enterprise AI software company on the market today, with growth rates that outpace its peers.
But Wolfe stopped short of an outright buy call, and the firm did not attach a new price target to the upgrade. Wolfe drops its Palantir sell call but won’t call it a buy Zukin’s note framed the shift bluntly: Palantir is not “too big to fail,” he wrote, but it has become “too big to ignore,” according to Barchart. More Tech Stocks: That distinction explains the rating.