Palantir Technologies: Strong U.S. Growth Amid International Challenges Justifies Hold Rating

Analyst Tyler Radke from Citi maintained a Hold rating on Palantir Technologies and increased the price target to $158.00 from $115.00.

Tyler Radke has given his Hold rating due to a combination of factors that reflect both the impressive performance and the existing challenges faced by Palantir Technologies. The company reported a remarkable second quarter, with significant revenue growth in both its commercial and government sectors, alongside a substantial increase in bookings and operating margins. This performance exceeded expectations and suggested strong momentum, particularly in the U.S. commercial market.
However, despite these positive developments, Radke’s Hold rating likely considers the challenges in international commercial revenue, which saw a decline, and the potential risks associated with maintaining such high growth rates. Additionally, while the fiscal year 2025 guidance was raised, indicating confidence in future performance, the stock’s expected share price return is projected to be slightly negative. These mixed signals contribute to a cautious stance, justifying the Hold rating.