Deutsche Bank lifts Palantir stock price target to $80 from $50

On Tuesday, Deutsche Bank (ETR:DBKGn) analysts adjusted their price target for Palantir Technologies Inc . (NASDAQ: NASDAQ:PLTR) to $80 from the previous $50, while still maintaining a Sell rating on the stock. The decision followed Palantir’s recent financial performance, which indicated strong results and momentum in artificial intelligence (AI). The stock currently trades near its 52-week high of $125.41, with InvestingPro data showing a remarkable 391% return over the past year.

Deutsche Bank’s analysts acknowledged Palantir’s success in capturing AI momentum and its potential role in government efforts to modernize and streamline operations through technology. Despite these positive outcomes and an upward revision of financial forecasts, the analysts expressed concerns over the company’s valuation. According to InvestingPro metrics, Palantir maintains impressive gross profit margins of 80.25% and achieved 28.79% revenue growth in the last twelve months, though current valuation metrics suggest the stock is trading above its Fair Value.

The firm’s analysts reported a decrease in international commercial revenue, noting a 5% year-over-year decline on a reported basis. Looking ahead, Deutsche Bank increased its fiscal year 2026 revenue estimates by 6% and operating income projections by 13%.

However, the analysts highlighted valuation concerns, pointing out that Palantir’s stock was trading at approximately 57 times their calendar year 2026 estimated revenue in after-hours trading. This valuation was significantly higher than that of other stocks covered by Deutsche Bank, with Palantir trading at around three times the revenue multiple of the next most expensive stock in their coverage. Additionally, on a uniform free cash flow (uFCF) basis, Palantir stood at approximately 140 times the analysts’ calendar year 2026 estimates, using after-hours pricing.

The revision of the price target to $80 reflects the updated financial estimates and the current market conditions, yet the Sell rating indicates ongoing concerns regarding the stock’s high valuation relative to its peers.

In other recent news, Palantir Technologies Inc. reported robust financial results, with revenue and operating income surpassing consensus expectations. The company saw a year-over-year revenue increase of 39% in the first quarter, driven by strong performance in the U.S. commercial sector, which achieved a 71% growth. Palantir revised its 2025 projections, raising revenue, operating income, and free cash flow by 4%, 10%, and 13%, respectively. Wedbush responded by increasing Palantir’s price target to $140, citing confidence in the company’s growth trajectory and its role in the AI revolution.

DA Davidson also raised its price target to $115, recognizing the company’s accelerating revenue growth and strong U.S. operations. Despite the positive earnings report, Jefferies maintained an Underperform rating, expressing concerns about Palantir’s valuation and international demand trends. The company’s recent partnership with xAI and TWG Global aims to transform AI adoption in financial services, highlighting Palantir’s commitment to expanding its influence. William Blair noted the company’s alignment with upcoming government contracts, which could sustain momentum in the government sector. These developments underscore Palantir’s continued growth and strategic initiatives in both commercial and government sectors.

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