RBC Capital Markets analysts believe the risk/reward for shares of Palantir Technologies Inc (NYSE:PLTR) is “unfavorable,” adding that the valuation for the company seems “unsustainable”.
In a note to clients on Tuesday, the analysts maintained their ‘Underperform’ rating and $45 per share price target on Palantir ahead of the company’s third quarter 2025 financial results scheduled for November 3 after market close.
They believe retail investors are likely becoming frustrated by Palantir’s failure to deploy roughly $6 billion in cash on its balance sheet and the company’s lack of clear strategy on this front, in addition to increasing concerns around privacy and ethics, could weigh on its stock price.
The analysts also see the ongoing US government shutdown impacting Palantir’s fourth quarter results.
In addition, RBC analysts remain cautious on the company’s Commercial growth given high levels of competition.
Palantir shares slipped 0.7% to $187.92 in midday trading on Tuesday.