From Morningstar:

Palantir stock is currently priced at $24 per share, with a Morningstar Rating of 2 stars. The company saw strong results in the last quarter, with significant momentum for its artificial intelligence platform in the US commercial market. The bullish perspective is that the AI/machine learning market is expected to grow rapidly due to an exponential increase in data. The downside is that Palantir’s stock is considered overvalued by Morningstar, with a wide Economic Moat Rating but high Uncertainty Rating.

Morningstar reports that while Palantir has a wide economic moat and strong market potential, they believe the stock is overvalued compared to their long-term fair value estimate. They forecast a 21% compound annual growth rate over the next 5 years, driven by commercial rather than governmental clients.

The PLTR bulls argue that Palantir has strong potential due to AI demand and a broadening commercial base. Meanwhile, the PLTR bears point to growth restrictions, competition, and prior strategic missteps that raise concerns.

With its 2-star rating, Morningstar believes Palantir’s stock is overvalued. They forecast a 21% annual growth rate over the next five years, driven more by commercial clients than government ones. Despite the wide economic moat, the analysts think the current market price is unjustified, echoing caution from potential investors.



Read more: After Earnings, is Palantir Stock a Buy, Sell or Hold?