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Palantir Gets Price-Target Hikes After Blowout Q3 as Valuation Keeps Ratings Neutral

Analyst target hikes signal AI demand strength despite a valuation that curbs upgrades.

Overview

  • DA Davidson lifted its Palantir price target to $215 and kept a Neutral rating, citing “parabolic” U.S. demand for AI and the company’s Ontology platform.
  • Cantor Fitzgerald raised its target to $198 with a Neutral stance, noting the shares trade at roughly five times the median multiple of its infrastructure software coverage.
  • Palantir reported Q3 revenue up about 63% year over year with profit margins around 40%, outperforming expectations.
  • Commercial revenue grew 73% to $548 million, including a 121% increase in U.S. commercial sales, while government revenue rose 55% to $633 million.
  • Investors face a valuation debate as the stock trades near 117 times sales and 246 times forward earnings, with U.S. client growth slowing to about 9% year over year from 12%–13% in prior quarters.