Mizuho Tells Investors to Unload Palantir (PLTR) Stock, Citing Valuation

Palantir's (PLTR) "high multiple" is "very difficult to justify," Gregg Moskowitz, an analyst at Japanese bank Mizuho, wrote recently.

The analyst believes that investors should sell PLTR. He placed an $89 price target on the shares.

PLTR Stock Bakes in a Great Deal of Success, Mizuho Says

The huge valuation of the shares already anticipates a "material acceleration" of the company's revenue growth, according to Mizuho. The stock is also baking in financial results that exceed analysts' average estimates, Moskowitz contended.

PLTR is changing hands for 173 times analysts' average 2025 earnings per share estimate.

The Positive Aspects of PLTR

Palantir is likely to beat analysts' average top-line estimates, and the name definitely does deserve "a premium valuation," according to Moskowitz.

What's more, AI adoption in America is likely to be "strong," the analyst believes. Since Palantir is helping companies implement AI, it will probably benefit from the latter trend.

The Recent Price Action of PLTR Stock

In the last month, the shares have fallen 2%, but they are up 29% in the last three months, and they have soared 335% in the last 12 months.

While we acknowledge the potential of PLTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.