Citi reiterates neutral rating on Palantir stock amid AIP adoption

Published 12/06/2025, 10:52
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Citi maintained its neutral rating and $115.00 price target on Palantir Technologies Inc . (NASDAQ:PLTR) following a recent visit to the company’s New York City office and meetings with CFO Dave Glazer. According to InvestingPro data, PLTR trades near its 52-week high with a substantial P/E ratio of 576, suggesting rich valuation levels.

The research firm reports that Palantir remains optimistic about adoption of its Artificial Intelligence Platform (AIP), with financial services emerging as a particular bright spot. The company is seeing a growing pipeline of financial service customers following its first-quarter contract with Citi Wealth.

Government business growth is expected to remain strong, with management noting that recent normalization has given them confidence in second-half growth and pipeline opportunities. The potential Golden Dome project continues to represent a significant opportunity for the data analytics firm.

International momentum shows mixed results, according to Citi. While Palantir has secured a NATO deal and sees opportunities in the Middle East, the company faces challenges in its European commercial business.

Palantir is maintaining discipline on margins by optimizing headcount and achieving efficiency gains on the product side, Citi notes. While the research firm maintains an upbeat view on Palantir’s fundamentals, it continues to express concerns about how the stock can grow into its current valuation, especially if positive revisions slow or large contracts fail to materialize as expected.

In other recent news, Palantir Technologies Inc. has been active with several strategic developments. Mizuho (NYSE:MFG) recently raised the price target for Palantir’s stock from $94.00 to $116.00, citing strong execution and strategic positioning with large customers. Despite this increase, Mizuho maintained an Underperform rating, indicating potential overvaluation concerns. Palantir also announced a multi-year partnership with Italian paper manufacturer Fedrigoni to enhance digital transformation efforts, focusing on stock optimization and demand forecasting. Additionally, Palantir has collaborated with Surf Air Mobility to develop the AI-powered SurfOS software suite, aimed at centralizing data and enhancing efficiency in the air mobility sector. In another partnership, Palantir joined forces with TeleTracking Technologies to improve decision-making in healthcare by integrating AI solutions. Furthermore, Palantir shareholders recently elected directors and ratified Ernst & Young as the accounting firm for the fiscal year 2025 during the annual meeting. These developments highlight Palantir’s ongoing efforts to expand its technological footprint across various industries.

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