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Yahoo
03-08-2025
- Business
- Yahoo
Analyst updates Palantir stock forecast before key earnings
Analyst updates Palantir stock forecast before key earnings originally appeared on TheStreet. Palantir () , the hot AI stock that's doubled this year, is making waves again. The company has recently secured another contract with the U.S. Army worth up to $10 billion over the next ten years. According to a release, Palantir will improve the Army's operational efficiency by creating a 'comprehensive framework for the Army's future software and data needs.' 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The deal consolidates multiple contracts into a single enterprise agreement, giving the Army more flexibility in purchasing software and services. It also reduces procurement delays and contract-related fees. Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients. The stock soared 340% in 2024 as demand for AI infrastructure surged across sectors. Investors are now watching closely ahead of the company's second-quarter earnings report, which is set for August 4 after the bell. What to watch for Palantir's second quarter earnings Three months ago, Palantir delivered robust earnings for the first quarter and issued a strong forecast for the second, yet the stock tumbled 12% on the following trading day. Palantir's first-quarter revenue beat was primarily fueled by robust U.S. sales, which rose 55% year-over-year. U.S. commercial revenue jumped 71%, while government revenue grew 45%. U.S. revenue accounted for about 71% of the total."We are in the middle of a tectonic shift in the adoption of our software," CEO Alex Karp said. 'We are delivering the operating system for the modern enterprise in the era of AI. Consequently, we are raising our full-year guidance for total revenue growth to 36% and our guidance for U.S. commercial revenue growth to 68%.' Palantir projects second-quarter revenue of $934 million to $938 million, surpassing the consensus estimate of $899.1 million. Just days ahead of its second-quarter earnings report, Palantir was trading near record levels. On July 31, the stock reached an all-time intraday high of $160.89. It closed at $154.27 on August 1, weighed down by a broader market slump. With that sharp surge, investors question whether Palantir's valuation is running too far ahead of its fundamentals. The stock currently trades at 277x forward earnings, well above other software providers like Microsoft () , which is 34x, and Salesforce () , which is 22x. Still, D.A. Davidson's head of technology research, Gil Luria, argued that Palantir is being driven up by 'very loyal' individual investors who prioritize the company's mission over its valuation. Analyst bullish on Palantir stock before earnings Wedbush reiterated an outperform rating and a price target of $160 for Palantir stock ahead of its earnings, according to a recent research note. Analysts led by Daniel Ives said the recent deal with the U.S. Army represents an additional tailwind, which places Palantir in the sweet spot to benefit from "a tidal wave of federal spending on AI.""We continue to believe that Palantir's unique AI software approach will be a positive growth catalyst as governments look to further increase efficiency with more software/lower headcount," Ives wrote. The analysts expect to hear more about this deal and strong AI-driven results when Palantir reports earnings. More Palantir Veteran trader surprises with Palantir price target and comments Musk moves xAI, Grok onto Palantir turf Veteran analyst sends bold message on Palantir stock target Palantir makes surprise move into weather This note follows Wedbush's earlier update on July 10, when the firm raised its price target on the stock from $140 to $160. "We believe Palantir has a 'golden path to become the next Oracle' over the coming years and while the valuation is expensive today we see the Messi of AI as a core winner in the trillions of AI spend over the next few years," Ives updates Palantir stock forecast before key earnings first appeared on TheStreet on Aug 3, 2025 This story was originally reported by TheStreet on Aug 3, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
07-06-2025
- Business
- Globe and Mail
TipRanks AI Sees More Upside in Palantir Stock (PLTR) Than Wall Street Does
Wall Street analysts have taken a cautious stance on Palantir Technologies (PLTR), with average price targets hovering around $100. However, TipRanks' A.I.-powered stock forecast of $148 tells a different story, predicting an upside of 23% from current levels. By analyzing a wide array of data points, including earnings sentiment, technical trends, and sentiment-based indicators, TipRanks' A.I. model projects a higher valuation for Palantir than the average analyst consensus. Confident Investing Starts Here: Palantir Earns Outperform Rating Backed by Solid Financials According to TipRanks A.I Stock Analysis, Palantir earns a solid score of 77 and an Outperform rating, reflecting its robust financial results and encouraging signals from its recent earnings call. The company's strong revenue growth, expanding margins, and confident management commentary have boosted investor sentiment. Notably, Palantir reported 39% year-over-year revenue growth in Q1 2025, beating its guidance by nearly 350 basis points. Meanwhile, U.S. revenue was particularly impressive, rising 55% year-over-year. Additionally, the company's U.S. commercial business crossed the $1 billion annual run rate milestone for the first time, fueled by 71% year-over-year growth. Despite facing some headwinds in international markets, Palantir's strategic emphasis on AI and deepening presence in the U.S. government and defense sectors positions it well for long-term growth. TipRanks analysis further stated that while the high valuation may prompt some caution, the company's AI-driven solutions and execution strength continue to make a compelling case for future upside. From a technical standpoint, momentum indicators point to continued bullishness, although the stock's current valuation may be running ahead of fundamentals. What Is the 12-Month Forecast for Palantir? On the other hand, Wall Street holds a cautious stance on PLTR stock. According to TipRanks consensus, PLTR stock has a Hold rating, based on three Buys, 11 Holds, and four Sells assigned in the last three months. The average Palantir share price target is $100.13, which implies a downside potential of 16.5% from current levels. See more PLTR analyst ratings Disclaimer & Disclosure Report an Issue
