Citi (C, Financial) warned that Palantir Technologies (PLTR, Financial)'s valuation leaves ‘Little Room for Missteps', according to a Friday research note.

The Wall Street bank kept its Hold rating on PLTR even after lifting its price target to $115 from $110. Citi analyst Tyler Radke said Palantir must deliver flawless execution to justify trading at roughly 55 times its expected 2026 sales.

Palantir beat Q1 estimates earlier this week, but shares fell after management' modest full‑year guidance failed to meet lofty market hopes. Investors have grown cautious as the company balances growth with rising expenses.

Radke noted Palantir's push to refine products and cut costs through technology. Yet, he cautioned that quarterly swings in spending and taxes could pressure margins, making steady execution critical.

Year‑to‑date, PLTR has climbed about 57% and remained up 478% over the past 52-weeks.