Brokerage reports and analyst ratings for Palantir Technologies (PLTR)
Palantir Technologies (PLTR) has attracted considerable attention from Wall Street analysts, with varying opinions regarding its future trajectory.
Consensus Rating
- The current consensus rating for Palantir Technologies is Hold.
- This is based on ratings from a total of 23 brokerage firms.
- A month ago, the average brokerage rating (ABR) was slightly higher at 2.95 (on a scale of 1 to 5, where 1 is Strong Buy and 5 is Strong Sell).
Price targets
- The average 12-month price target for PLTR is $155.78, according to short-term targets from 18 analysts.
- Forecasts range from a low of $45.00 to a high of $200.00.
- The average price target represents a potential downside of 1.25% from the last closing price of $157.75.
Recent analyst activity
- Goldman Sachs reiterated a Hold rating with a price target of $141.00.
- HSBC reiterated a Hold rating with a price target of $181.00.
- RBC Capital raised its price target to $45.00 while maintaining an Underperform rating.
- William Blair reiterated a Market Perform rating.
- Morgan Stanley reiterated an Equal Weight rating with a price target of $155.00.
- Mizuho Securities maintained a Hold rating with a price target of $165.00.
- Cantor Fitzgerald maintained a Hold rating with a price target of $155.00.
- Loop Capital Markets reiterated a Buy rating with a price target of $180.00.
- Northland Securities reiterated a Hold rating with a price target of $140.00.
- Wedbush reiterated a Buy rating with a price target of $200.00.
- D.A. Davidson reiterated a Hold rating with a price target of $170.00.
- Deutsche Bank upgraded Palantir to Hold from Sell with a price target of $160.00.
- UBS reiterated a Neutral rating with a price target of $165.00.
- Robert W. Baird reiterated a Neutral rating with a price target of $170.00.
Bullish and bearish perspectives
Bulls say
- Palantir Technologies exhibits substantial revenue growth, particularly in its government and US commercial segments, fueled by increasing demand for AI and software products.
- The company’s revenue forecast for fiscal year 2025 stands between $3.741 and $3.757 billion, marking a significant 31% increase.
- US commercial revenue is projected to exceed $1.079 billion, a 54% increase.
- Growth is bolstered by new client acquisitions and deeper integration of Palantir’s platforms, like Foundry and AIP, within existing customer operations across diverse industries including energy, automotive, industrial, and healthcare.
- Strategic alliances with partners like Deloitte and Accenture are expanding Palantir’s market penetration and accelerating customer adoption.
- The company achieved outstanding Q2 FY25 results with a 48% revenue increase, 82% gross margins, and a Rule of 40 score of 94.
- The US government’s increased defense spending, including a potential “Golden Dome” missile defense initiative, presents further contract opportunities for Palantir.
Bears say
- Macroeconomic challenges, especially in Europe, could curtail enterprise AI spending and impact Palantir’s overall revenue growth.
- Heavy reliance on US government budgets raises concerns, given potential shifts in defense spending or procurement policies.
- Challenges in European market adoption could hinder expansion strategies.
- The valuation of Palantir’s stock is seen as exceptionally high, raising concerns about its sustainability.
- High installation and maintenance expenses may limit the scalability and broader adoption of Palantir’s platforms.
- The market share in the commercial sector is relatively small, and current growth might be inflated by AI hype, according to Seeking Alpha.
- The company’s emphasis on government contracts and immigration enforcement could pose challenges for international expansion.
- Recent stock performance indicates potential volatility and vulnerability to market corrections.
- Some analysts express concerns about Palantir’s long-term growth potential and believe the valuation is stretched, even considering the impressive growth story.
It’s important to consider that brokerage reports and analyst ratings are opinions and are subject to change.
PLEASE CONSULT YOUR FINANCIAL ADVISOR : Investors are encouraged to conduct thorough independent research and consult with financial advisors before making any investment decisions.