BofA lifts Palantir stock target to $90, maintains Buy rating

On Monday, BofA Securities analyst Mariana Perez Mora updated her outlook for Palantir Technologies Inc . (NASDAQ:PLTR), increasing the price target to $90 from the previous $75 while retaining a Buy rating on the shares. The adjustment comes as Palantir prepares to announce its fourth-quarter earnings for the year 2024 later today. The stock has shown remarkable momentum, gaining over 9% in the past week and trading near its 52-week high of $85.22. According to InvestingPro analysis, the company currently trades at premium valuations, with a P/E ratio of 389x, suggesting high growth expectations from investors.

The analyst remains optimistic about the company’s performance, anticipating that the reported revenue will exceed the projected range of $767 to $771 million. This expectation is based on the continued robust performance in both the US Government and US Commercial sectors. Supporting this optimism, InvestingPro data shows Palantir maintains an impressive gross profit margin of 81.1% and has demonstrated strong revenue growth of 24.52% over the last twelve months. The analyst also foresees Palantir providing a 2025 growth forecast in the mid-20% range, with potential for upward revisions throughout the year.

Mora projects a 27% year-over-year growth for Palantir in 2025, which is 2 to 3 percentage points higher than the Street consensus. Furthermore, the analyst believes that Palantir is well-positioned to surpass market expectations in the following years. While the consensus estimates a 20% annualized growth rate, Mora’s analysis suggests a more rapid acceleration, with growth rates of 30% in 2026 and 2027.

BofA’s increased price target reflects confidence in Palantir’s ability to maintain its growth trajectory and potentially outperform market expectations. As investors await the fourth-quarter earnings report, the company’s stock price may respond to these updated projections and the actual performance figures released. The market will closely watch for any indications of the company’s ability to sustain its growth pace in the coming years.

In other recent news, Palantir Technologies has undergone several significant developments. The company’s fourth-quarter earnings estimates were revised by Raymond (NSE:RYMD) James due to the vesting of approximately $120 million in stock appreciation rights. Despite this, projections for adjusted EBITDA and adjusted earnings per share remain unchanged. Palantir also secured a substantial contract with the U.S. Army, valued at approximately $400.7 million.

Multiple analyst firms have weighed in on Palantir’s performance. 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. Morgan Stanley (NYSE:MS) downgraded Palantir to an Underweight rating due to valuation concerns, and Wedbush Securities increased its price target on Palantir’s shares from $75 to $90, reflecting confidence in the company’s artificial intelligence strategy.

In contrast, 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 and DeepSeek.

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