Palantir Technologies stock has flown too far too fast, Jefferies argued on Tuesday—and now it is paying the price.

Palantir stock has fallen 30% over the past month, but is still up 267% over the past 12 months on investor enthusiasm for artificial intelligence. Palantir stock was down 4.5% at $83.44 on Tuesday.

Analysts led by Brent Thill, who rate Palantir stock at Underperform with a price target of $60, tuned into the company’s AI platform customer event. They were impressed with a slate of return-on-investment case studies—including Walgreens Boost Alliance and Heineken Holding—showing how Palantir products are helping transform businesses.

Walgreens, for instance, said that with Palantir technology, it “created AI-driven workflows for real-time labor allocation decisions” that boosted operational efficiencies.

“This positive momentum is baked into PLTR’s valuation at 45x CY26E, the most expensive stock in our coverage,” the Jefferies analysts wrote. “Fundamentals have been strong, but valuation remains the biggest concern, and insiders continue to sell with co-founder Stephen Cohen selling another $310M in shares over the past few days.”

Sometimes a valuation can simply be too high, no matter the fundamentals.