D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - UBS raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $165 from $110 while maintaining a Neutral rating, citing the company’s eighth consecutive quarter of revenue growth acceleration. According to InvestingPro data, the company has maintained impressive gross profit margins of 80% while delivering a 567% return over the past year.
The data analytics firm reported second-quarter 2025 revenue growth of 48%, a significant increase from 13% growth in the second quarter of 2023, according to UBS. This growth trajectory comes as Palantir reaches $4 billion in revenue scale, with a healthy current ratio of 6.49x indicating strong liquidity.
Palantir raised its full-year 2025 total growth guidance to 45% from the previous 36% forecast, while slightly increasing its non-GAAP margin target to 46%.
UBS attributes Palantir’s performance to "a confluence of mega-trends in AI application development, investments at the data layer and the modernization of defense tech."
Despite the positive growth indicators, UBS maintained its Neutral rating, citing valuation concerns with Palantir trading at 136 times calendar year 2026 estimated free cash flow. InvestingPro analysis suggests the stock is currently overvalued, with multiple valuation metrics including P/E ratio at 687x and Price/Book at 75x showing premium pricing. For deeper insights into Palantir’s valuation and 20+ additional ProTips, consider accessing the comprehensive Pro Research Report.
In other recent news, Palantir Technologies Inc. reported a significant increase in total revenue, reaching $1,004 million, which marks a 48% year-over-year growth and surpasses consensus estimates by approximately 7%. This impressive performance has led to several notable changes in stock price targets from various financial firms. Mizuho (NYSE:MFG) raised its price target to $165 from $135, citing the company’s strong growth, while Morgan Stanley (NYSE:MS) increased its target to $155 from $98, noting the acceleration in key performance metrics. Goldman Sachs adjusted its price target to $141 from $90, maintaining a Neutral rating and highlighting enterprise customers’ commitment to Palantir’s AI strategy.
Additionally, RBC Capital raised its price target to $45 from $40, despite maintaining an Underperform rating, following the quarterly report. Wedbush made the most significant adjustment, increasing its price target to $200 from $160, driven by the strong demand for Palantir’s AI products and a remarkable 93% year-over-year growth in the U.S. Commercial segment. The firm expressed optimism about the company’s potential in the AI market. These developments reflect a broad recognition of Palantir’s performance and growth prospects among analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.