Jefferies Cuts Palantir Price Target 40% to $12, Flags Slowing Growth
PLTR•Jefferies downgraded Palantir to Hold from Buy and cut its 12-month price target by 40% to $12, citing slowing U.S. government contract renewals and rising operating expenses. The firm now projects fiscal 2026 revenue growth below 15% and flagged that current valuation exceeds peer multiples by over 25%.
1. Jefferies Downgrades Rating and Target
Jefferies moved Palantir from Buy to Hold and lowered its 12-month price target to $12 from $20, marking a 40% reduction. The firm attributed the downgrade to decelerating contract renewals with U.S. federal agencies and heightened spending on research and development that is compressing near-term margins.
2. Revised Growth Forecast and Valuation Concerns
In its updated model, Jefferies now forecasts Palantir’s fiscal 2026 revenue to grow at under 15%, down from prior estimates above 25%. Analysts warned that Palantir’s current enterprise value to sales multiple exceeds the peer group average by more than 25%, making downside risk more pronounced if government budgets tighten further.
