RBC Capital Maintains Underperform on Palantir, $90 Price Target

RBC Capital analyst Rishi Jaluria reiterated an Underperform rating and $90 price target on Palantir (NASDAQ: PLTR).

“We maintain our Underperform rating and $90 PT on Palantir ahead of Q3 earnings, scheduled for Monday, November 2nd AMC. • Risk/reward skews negative.

PLTR remains the most expensive stock across our RBC All-SaaS universe at ~61x EV/CY26 and ~40x EV/CY27 consensus revenue estimates, respectively (see here ), and although we acknowledge it screens cheaper on a growth adjusted basis we struggle to underwrite a scenario that justifies current valuation levels. • Retail interest pivots.

We updated our retail Q&A tracker, based on topic modeling analysis in collaboration with RBC Elements, our in-house data science team.

We find that retail investors have rotated back toward capital return themes, with Dividends, Stock Splits & Buybacks surging to ~46% weighted relevance (+30 pts QoQ) and reclaiming the top position after falling to fourth place in Q2.

The swing suggests growing frustration with the lack of concrete action on shareholder returns despite Palantir’s ~$9B cash balance.

Competitive Advantage vs Big Tech & AI Rivals, which dominated Q2 at ~36%, fell to ~16% (-20 pts QoQ), while Revenue Growth, AIP & Commercial Demand ticked up to ~11% (+5 pts QoQ).

In our view, this reversion signals that the moat and long- term growth debates have not produced sufficient resolution to sustain retail focus, and investors have defaulted back to the most near-term lever management can pull. • Healthy government data.

Our estimated government tracker suggests QCV declined QoQ but remains elevated, while Net New ACV dropped considerably relative to the past four quarters.

We are not surprised to see continued strength as ongoing geopolitical conflicts continue to drive activity, though overall the data suggests potential softness on a sequential basis.

We continue to monitor the government segment amid heightened expectations.”

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