Analysts liked what they heard from Palantir after the software company reported another strong quarter and issued rosy guidance. Several analysts raised their price targets and Morgan Stanley capitulated on its sell rating and upgraded the stock. The software platforms company reported revenue expansion of 36% in the fourth quarter, while CEO Alex Karp lauded its use of artificial intelligence to foster growth. The company’s earnings per share also topped analyst expectations. For the full year, Palantir expects sales in the range of $3.74 billion to $3.76 billion, while analysts polled by LSEG forecast $3.52 billion. Shares surged more than 18% in the premarket following the company’s quarterly report. Despite the strong results, many analysts maintained a cautious tone on the company overall, with several holding on to their hold and underperform-equivalent ratings. Here’s what they had to say. Bank of America raises price target to $125 from $90 BofA’s new forecast implies more than 43% from Monday’s close. The firm also reiterated its buy rating. “PLTR’s focus on operationalizing data, establishing high-fidelity digital enterprise-twins, and accelerating decision making is a winning formula,” analyst Mariana Perez Mora said. “We expect further market-value being awarded to the AI value-adders vs. commodity distributors and stand firmly that PLTR will remain a value adder.” UBS raises price target to $105 from $80 Analyst Karl Keirstead noted that UBS was “impressed with the fundamentals” from Palantir, and his new price target implies more than 25% upside. Though the analyst kept his neutral rating. “In light of DeepSeek, Palantir reaffirmed its views that model costs are falling fast and performance gaps are narrowing. In our view, Palantir’s pricing structure may help to insulate it from any resulting AI price deflation,” Keirstead said. Morgan Stanley upgrades to equal weight, raises price target to $95 from $60 Morgan Stanley upgraded Palantir to equal weight from underweight on Tuesday. Its newoutlook calls for more than 13% upside for the stock. “Given the strength of the outlook, we acknowledge that we were wrong about our core fundamental catalyst of slowing growth below the 30% level due to the tougher compares in 2025,” analyst Sanjit Singh said. “This leaves us with valuation as the primary remaining concern.” Jefferies raises price target to $60 from $28 Analyst Brent Thill’s forecast equates to about 28% downside moving forward. The analyst reiterated an underperform rating. “Fundamentals have been strong and we are constructive on the accelerating U.S. momentum, but CY25 [revenue] guide implies 31% growth vs 29% in CY24, and PLTR would need to[accelerate] growth to 50% for 4 years and trade at 18x CY28E [revenue] just to hold its stock price,” Thill said.
