Palantir stock price target raised to $170 from $100 at Baird on revenue growth

Investing.com - Baird raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $170.00 from $100.00 while maintaining a Neutral rating following the company’s second-quarter results. The stock, which has delivered an impressive 567% return over the past year, currently trades at an EV/EBITDA multiple of 917x, suggesting significant premium valuations according to InvestingPro data.

Palantir reported its eighth consecutive quarter of accelerating total revenue growth, reaching 48% compared to 39% in the first quarter, according to Baird analyst notes.

The company’s U.S. commercial and U.S. Government segments were highlighted as key growth drivers, with year-over-year increases of 93% and 53%, respectively.

Palantir has raised its full-year guidance and outlined five-year aspirations to increase revenue ten-fold while improving operational efficiency.

Despite acknowledging Palantir’s revenue acceleration and AI leadership potential, Baird maintained its Neutral stance, citing valuation concerns as a factor in its cautious outlook.

In other recent news, Palantir Technologies Inc. reported impressive financial results, with revenue growth accelerating to 48% and free cash flow margins reaching 57%. The company achieved a revenue scale of $4 billion, with its quarterly revenue totaling $1,004 million, surpassing consensus estimates by approximately 7%. Following these results, several financial firms adjusted their price targets for Palantir. Loop Capital raised its target to $180, maintaining a Buy rating, while UBS increased its target to $165, citing eight consecutive quarters of revenue growth acceleration. Goldman Sachs also raised its price target to $141, noting the company’s success in capturing enterprise customers’ AI strategy budgets. RBC Capital increased its target to $45 despite maintaining an Underperform rating. Morgan Stanley (NYSE:MS) raised its target to $155, highlighting Palantir’s strong performance across key metrics. These developments reflect the company’s continuing success in the AI sector.

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