Analysts are floating growth concerns over Palantir after the company’s latest quarterly report. The artificial intelligence software provider on Monday reported results that topped top and bottom line estimates . It also hiked its full-year guidance given explosive growth in AI. The company’s revenues grew 48% during the period and hit $1 billion for the first time. Palantir shares jumped more than 5% in early morning trading, continuing its post-earnings rally. Year to date, the stock has rallied 112.4%. Some analysts raised their price targets on the stock after the report. However, the Street remains divided on shares. Of the 25 analysts that cover the stock, two rate it a strong buy while four have a buy rating, per LSEG. Sixteen analysts rate shares a hold, with the rest assigning an underperform or sell rating. Here’s how some top analysts are positioned after Palantir’s results: Jefferies: maintains underperform rating, $60 price target Analyst Brent Thill said Palantir reported “ripping fundamentals” but that its valuation is disconnected from even more optimistic growth scenarios. His price target suggests a potential decline of about 62%. “While fundamentals have strengthened meaningfully in recent quarters, PLTR now trades at 74x CY26E revenue. Even under a bullish scenario where the company accelerates to a 55% 4-year CAGR, the stock would need to trade at 25x CY28E revenue just to justify its current price, highlighting the disconnect between valuation and achievable growth … We continue to view PLTR’s GTM strategy as a structural risk. Ongoing reliance on a services-led approach (FDEs) and a limited direct sales force raises questions about scalability and efficiency. UBS: maintains neutral rating, lifts price target by $55 to $165 The firm’s new price target still suggests minimal upside ahead of about 2.7%. “Palantir is benefiting from a confluence of megatrends in AI application development, investments at the data layer and the modernization of defense tech, but valuation at 136x CY26E FCF remains our key hurdle and we remain Neutral rated,” analyst Karl Keirstead said in a note to clients. “Given we expect Palantir’s fundamental business outlook to remain relatively stable we expect Palantir will continue trading at the high end of the historical range.” Citi: keeps neutral rating, $158 price target Analyst Tyler Radke called it a “truly exceptional” second quarter for Palantir, but like other Wall Street majors, remains cautious on the stock’s valuation. “While we were positive on fundamentals into the quarter, the magnitude of the upside and the bookings/backlog was well above even the highest of expectations, and even more impressive vs. the rest of software. We expect stock to hold after-hour gains given the blowout performance,” he said. Morgan Stanley: maintains equal weight rating, lifts price target to $155 from $98 Analyst Sanjit Singh said Palantir is “winning the current AI cycle.” “Wow… is our reaction to Q2 results with nearly every headline metric and KPI accelerating versus Q1 which itself was a very strong quarter,” Singh wrote in a note. “As Gen AI has captured the collective mindset of tech and society at large over the last few years, it now seems as little coincidence that Palantir has just reported 8 straight quarters of accelerating YoY growth.” Deutsche Bank: upgrades to hold from sell, lifts price target by $80 to $160 The firm views Palantir’s Ontology business as its “real differentiator” with its valuable customer base, large contract awards and scale in terms of growth and margins. Valuation concerns remain, however. “We were admittedly quite late to the party in appreciating how Palantir’s platform is uniquely positioned for AI and changed the trajectory of the company. For several quarters now we’ve more fully credited this progress but struggled with valuation that remains at an order of magnitude premium to all public Software peers,” analyst Brad Zelnick said.