--- title: "‘It Skews One Way,’ Says Rosenblatt About Palantir Stock" type: "News" locale: "en" url: "https://longbridge.com/en/news/294383349.md" description: "Rosenblatt analyst John McPeake maintains a Buy rating on Palantir (PLTR) with a $225 price target, citing an upside skew in risk. Despite the stock's recent decline and high valuation concerns, McPeake argues that Palantir's compressed P/E multiple of 68x is unjustified given its 61% operating margins and projected 70-80% EPS growth. He anticipates strong Q2 earnings driven by AI spending, forecasting revenue of $1.865 billion and significant free cash flow expansion, positioning Palantir as a unique platform for enterprise AI deployment." datetime: "2026-07-30T14:33:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294383349.md) - [en](https://longbridge.com/en/news/294383349.md) - [zh-HK](https://longbridge.com/zh-HK/news/294383349.md) --- # ‘It Skews One Way,’ Says Rosenblatt About Palantir Stock **Palantir (NASDAQ:PLTR)** heads into its Q2 earnings report next Monday (August 3) with investor sentiment still subdued. The stock is down 31% year-to-date as concerns mount that AI labs could disrupt traditional software companies, while Palantir’s notoriously rich valuation has also weighed on investor enthusiasm. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks However, while Rosenblatt analyst John McPeake thinks the investment debate on Palantir remains on the “moat around the business, the concomitant sustainability of growth, and valuation,” the latter point might not be the issue it is made out to be. He notes that Palantir shares have underperformed significantly since the company delivered stronger-than-expected Q1 results on May 4. The stock has fallen 16%, sliding from $146 to $123, while the broader IGV software ETF has gained 4% over the same period. As earnings estimates have rolled forward by one quarter, Palantir’s next-twelve-month P/E multiple has compressed by 31%, dropping from 98x to 68x – its lowest valuation level in two years. McPeake argues that focusing on EV/revenue can be misleading given Palantir’s exceptional profitability, with operating margins of 61%. The resulting 38x EV/revenue multiple is “just arithmetic,” and he believes earnings or free cash flow are more appropriate valuation measures at this stage of Palantir’s growth. “Were PLTR to stay at this price, in a year the stock would be trading at an NTM PE of 34x, which we think would be an overly compressed multiple for a company uniquely attached to the mother of all technology cycles and likely growing EPS at 70-80%, so we see an upside skew to risk,” the analyst went on to say. McPeake sees Palantir’s platform as the only “unified, platform-agnostic solution” capable of handling system integration, data analysis, orchestration, and AI deployment at scale. This positioning has enabled the company to become the only scaled enterprise software provider experiencing meaningful growth acceleration, while also placing it among the few large tech companies whose free cash flow is expanding at a pace comparable to earnings growth. As for the results, with McPeake’s checks pointing to “continued strong growth–and even potential acceleration,” he expects a beat-and-raise print. His $1.865 billion revenue estimate, representing 86% year-over-year growth, is above Palantir’s $1.797 billion-$1.801 billion outlook and implies a slight acceleration from Q1’s 85% growth. The analyst forecasts adjusted operating income to climb 142% year-over-year to 60.3% of revenue, with free cash flow rising 165%. While country and sector growth is difficult to forecast, McPeake sees U.S. commercial as the strongest growth driver, followed by U.S. government, foreign commercial, and international government. The analyst believes Palantir is benefiting from hyperscalers’ AI spending boom and sees room for guidance increases, forecasting 80% full-year 2026 growth vs. the company’s current 71% target and the Street’s 73% call. “We think patient PLTR investors will be rewarded via substantial compounding of EPS and free cash flow over time,” McPeake summed up. Bottom line, McPeake maintained a Buy rating on the shares, while his $225 price target implies shares will climb 85% higher over the one-year timeframe. (To watch McPeake’s track record, click here) The Street’s average target is not quite as high, but at $181.24, the figure suggests shares will gain 49% in the months ahead. On the rating front, based on 15 Buys, 4 Holds and 2 Sells, the analyst consensus views this stock as a Moderate Buy. 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