Palantir Technologies (PLTR) delivered another impressive quarter, topping Wall Street’s expectations for both revenue and earnings. The AI-focused software company continues to ride the AI boom, with demand from government and commercial clients driving strong growth. Following the Q3 beat, analysts are showering the company with praise, with several raising their price targets.
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Despite solid Q3 results, PLTR stock fell almost 8% in pre-market trading as high investor expectations and a premium valuation left little room for disappointment. Investor sentiment was also hurt after renowned investor and hedge fund manager Michael Burry revealed new put options against Palantir.
DA Davidson’s Top Analyst Stays Bullish
Following the results, five-star-rated analyst Gil Luria at D.A. Davidson raised his price target on PLTR stock from $170 to $215, while keeping his Hold rating. Luria said Palantir is “by far the best software company, and they keep raising the bar for themselves.” He highlighted Palantir’s impressive $4 billion run rate growing at 63%, underscoring its strong momentum.
Luria added that Palantir’s commercial business is set to expand further, driven by the growing adoption of its AI solutions among businesses. Notably, the company expects U.S. commercial revenue to exceed $1.43 billion for the full year, marking a year-over-year increase of at least 104%.
Palantir’s Growth Is ‘Fantastic’
Cory Johnson, chief market strategist at Epistrophy Capital Research, called Palantir’s growth “fantastic.” Speaking with Yahoo Finance, he noted that the company’s commercial revenue jumped 121% year-over-year, well above his expectation of 99% growth. He added that it’s amazing growth for a business that was already expanding at a strong pace.
At the same time, Johnson expects strong retail investor interest ahead in PLTR stock. While he admits the stock is “insanely expensive,” he says it’s priced for the big vision of Palantir’s all-encompassing AI and government services.
Adding to the optimism, top-rated analysts at Morgan Stanley, UBS, Goldman Sachs, and Bank of America lifted their price targets on PLTR stock, pointing to sustained growth.
Is PLTR a Good Stock to Buy Now?
According to TipRanks consensus, PLTR stock has a Hold rating, based on four Buys, 13 Holds, and two Sells assigned in the last three months. The average Palantir share price target is $163.71, which implies a downside of over 20% from current levels.
