Palantir price target raised to $12 from $9 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Palantir to $12 from $9 and keeps an Underweight rating on the shares after the company delivered “a narrow top-line beat” in Q4 and Q4 EPS and free cash flow were driven by operating margins that were up about 12 percentage points year-over-year. However, expense growth decelerating to 0% year-over-year in the second half enables those margins, which runs the risk of restricting future growth and leaves the risk/reward “unfavorable,” the analyst tells investors.