Baird raises Palantir stock price target to $100 on strong Q4 results

Published 04/02/2025, 09:14
© Reuters

On Tuesday, Palantir Technologies Inc . (NASDAQ:PLTR) saw its price target increased by Baird from $70.00 to $100.00, while the firm maintained a Neutral rating on the stock. The adjustment followed Palantir’s announcement of robust fourth-quarter earnings and the release of its initial 2025 guidance, which exceeded previous expectations. Trading near its 52-week high of $85.22, the stock has delivered an impressive 392% return over the past year. The company’s shares experienced an uptick in after-hours trading yesterday in response to the news.

Palantir’s growth has been driven by its U.S. commercial and U.S. government sectors, which have seen year-over-year increases of 64% and 45%, respectively. This performance represents the sixth consecutive quarter of accelerating total revenue growth for the company, with a 36% increase compared to 30% in the third quarter. With an impressive gross profit margin of 81.1% and strong liquidity indicated by a current ratio of 5.67, the company has demonstrated robust financial health. The company has been recognized for its ability to deliver tangible returns on investment (ROI) through the application of artificial intelligence (AI).According to InvestingPro analysis, Palantir currently appears overvalued compared to its Fair Value, despite its strong operational performance. Subscribers can access 18 additional ProTips and comprehensive valuation metrics.

The firm’s analysts acknowledged Palantir’s continued strong operating momentum and its position as a leader in AI. Despite the positive outlook on the company’s performance and leadership in AI, Baird expressed caution, indicating a reluctance to pursue the stock aggressively at this stage. Trading at a P/E ratio of 389x and a Price/Book ratio of 42.4x, these high valuation multiples support the cautious stance. The analysts cited the significant operational progress and AI expertise as factors contributing to their increasingly positive perspective on Palantir’s future.

In other recent news, Palantir Technologies has delivered impressive fourth-quarter performance, featuring a record revenue beat and growth acceleration in most top-line metrics. Jefferies analyst Brent Thill increased the price target on Palantir to $60 from the previous $28, while retaining an Underperform rating. DA Davidson also raised its price target for Palantir to $105, after the company reported strong quarterly revenue growth due to robust demand in the United States for artificial intelligence solutions. BofA Securities followed suit, raising its price target for Palantir to $90 from the previous $75, maintaining a Buy rating.

Citi analysts maintained their Neutral rating and $42.00 price target for Palantir, while Jefferies reiterated its Underperform rating with a steady price target of $28.00. Palantir’s fourth-quarter earnings estimates were revised due to the vesting of approximately $120 million in stock appreciation rights, but projections for adjusted EBITDA and adjusted earnings per share remain unchanged. The company also secured a significant contract with the U.S. Army, valued at approximately $400.7 million.

In related developments, Chinese AI startup DeepSeek’s chatbot was found to have a low accuracy rate in delivering news, according to an audit by NewsGuard. Despite this, the chatbot quickly became the most downloaded app in Apple (NASDAQ:AAPL)’s App Store. These are some of the recent developments involving Palantir Technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.