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Investing.com - Goldman Sachs raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $141.00 from $90.00 while maintaining a Neutral rating on the stock. The AI software company, now commanding a market capitalization of $405 billion, has seen its stock surge over 566% in the past year. According to InvestingPro analysis, the company currently trades above its Fair Value.
The firm cited Palantir’s recent results and commentary, which demonstrate that enterprise customers are allocating meaningful share of wallet to the company as a proven method for executing AI strategy. This is reflected in Palantir’s impressive 33.45% revenue growth and strong gross profit margins of 80%.
Goldman Sachs noted it struggles to reconcile the fundamental bull case that suggests the market is in early stages of a custom AI software era with concerns that the industry may be at "peak bespoke build" as other parts of the AI ecosystem mature.
The firm specifically mentioned that SaaS incumbents, AI natives, and system integrators will likely mature, potentially challenging Palantir’s position in the custom AI software market.
Goldman’s valuation concerns center on Palantir’s current metrics of 80x EV/Sales compared to 20%+ growth peers at 8x on 2026 estimates, and more than 150x EV/FCF versus peers at 40x on 2026 projections. InvestingPro data reveals a P/E ratio of 686.8x, supporting these valuation concerns. For deeper insights into Palantir’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Palantir Technologies Inc. reported impressive quarterly earnings, with total revenue reaching $1,004 million, marking a 48% year-over-year growth. This performance exceeded consensus estimates by approximately 7% and marked the first time Palantir’s revenue surpassed $1 billion. Following these results, several firms adjusted their price targets for Palantir. RBC Capital raised its price target to $45 from $40, maintaining an Underperform rating. Morgan Stanley (NYSE:MS) increased its target to $155 from $98, keeping an Equalweight rating, and Mizuho (NYSE:MFG) adjusted its target to $165 from $135, with a Neutral rating. Wedbush raised its price target to $200, citing significant demand growth in Palantir’s AI product suite and maintaining an Outperform rating. BofA Securities increased its target to $180 from $150, maintaining a Buy rating. Analysts highlighted the company’s strong growth across various segments, particularly in AI, contributing to these favorable evaluations.
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