Mizuho raises Palantir stock price target to $94, retains underperform rating

On Tuesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Palantir Technologies Inc . (NASDAQ:PLTR), increasing the price target to $94 from the previous $80, while continuing to recommend an Underperform rating on the company’s shares. The new price target comes after Palantir reported a strong financial performance, with a 39% year-over-year revenue growth, surpassing both Mizuho’s and the broader market’s projections of approximately 36%. According to InvestingPro data, the company maintains impressive gross profit margins of 80.25% and has delivered an extraordinary 391% return over the past year.

Palantir’s recent financial results have been bolstered by its U.S. commercial and government segments. Additionally, management has revised its fiscal year 2025 guidance upwards, following a better-than-expected first quarter. The firm’s stock has seen a significant recovery over the past month, now trading near its 52-week high of $125.41, with a remarkable six-month return of 123%. InvestingPro analysis reveals 18 additional key insights about Palantir’s performance and future prospects, available to subscribers.

Despite the positive developments, Mizuho analysts express caution, citing valuation concerns. They acknowledge Palantir’s impressive recent performance and strong market positioning, which they believe warrants a premium valuation. However, the analysts find it challenging to justify the company’s current high valuation multiples, with InvestingPro data showing a P/E ratio of 593x and an EV/EBITDA of 839x. The stock appears significantly overvalued according to InvestingPro’s Fair Value model, placing it among stocks featured in the most overvalued list. This valuation, in their view, already factors in substantial acceleration and upside compared to consensus expectations.

Mizuho’s revised price target reflects recognition of Palantir’s good execution and the significant upward revisions to its financial outlook. The firm’s decision to maintain the Underperform rating indicates a belief that, despite the company’s operational strengths and market capitalization of $292 billion, the stock’s current price may not fully align with the underlying financial metrics and future growth potential. For a comprehensive analysis of Palantir’s valuation and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Palantir Technologies Inc. reported a 39% year-over-year increase in revenue for the first quarter of 2025, totaling $884 million. The company’s earnings per share (EPS) matched analyst expectations at $0.13, while revenue slightly exceeded forecasts of $864.11 million. Despite these strong financial results, Palantir’s stock experienced a decline of 8.31% in after-hours trading, reflecting investor concerns over future growth prospects. Palantir has raised its full-year 2025 revenue guidance to between $3.890 billion and $3.902 billion, indicating a 36% year-over-year growth. The company continues to see significant growth in its U.S. operations, with commercial revenue rising 71% year-over-year. The firm also highlighted ongoing strength in its AI Platform, particularly in enterprise autonomy. Palantir faces international revenue challenges, especially in Europe, but remains optimistic about its AI-driven innovation and expansion.

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