Artificial intelligence (AI)-powered data analytics company Palantir Technologies (PLTR) reported better-than-expected third-quarter results and issued strong guidance. Despite the beat-and-raise quarter, PLTR stock was down about 9% as of writing on Tuesday. Mizuho and Jefferies raised their price targets for Palantir stock following the Q3 earnings beat, but maintained Hold and Sell ratings, respectively. Several analysts remain cautious on PLTR stock due to valuation concerns.
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Mizuho Analyst Remains Neutral on Palantir Stock Despite Q3 Earnings Beat
Mizuho analyst Gregg Moskowitz increased the price target for Palantir Technologies stock to $205 from $165 and reiterated a Hold rating. The 4-star analyst noted that the company’s strong Q3 performance was driven by 63% year-over-year revenue growth. Moskowitz added that the top-line growth was driven by accelerating demand for the company’s Artificial Intelligence Platform (AIP) offering.
Moskowitz acknowledges PLTR’s “stunning” execution and believes it is well-positioned to capitalize on long-term trends in AI, government digital transformation, and industrial modernization. That said, he remains sidelined on PLTR stock due to its steep valuation. Moskowitz contends that Palantir stock’s valuation multiple of 64x 2027 revenue estimate is “extreme, dramatically above anything else in software.”
Jefferies Retains Sell Rating on PLTR Stock
Jefferies analyst Brent Thill increased the price target for Palantir Technologies stock to $70 from $60, but maintained a Sell rating. The 5-star analyst noted that the company’s U.S. demand is “clearly booming,” with the year-over-year growth in total Q3 revenue and the U.S. Commercial segment revenue accelerating to 63% and 121%, respectively, compared to 48% and 93% in the previous quarter.
While Thill is impressed with Palantir’s fundamentals, he remains bearish on the stock due to its “unfavorable” risk/reward profile at 83x 2026 revenue estimate and would prefer to gain exposure to AI through stocks like Microsoft (MSFT) and Snowflake (SNOW).
Is PLTR Stock a Good Buy?
Currently, Wall Street has a Hold consensus rating on Palantir Technologies stock based on 13 Holds, four Buys, and two Sell recommendations. The average PLTR stock price target of $180.88 indicates a downside risk of 5% from current levels. PLTR stock has rallied more than 150% year-to-date.
