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Investing.com - Piper Sandler raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $182.00 from $170.00 on Tuesday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock is currently trading at premium valuations with a P/E ratio of 643x, reflecting market optimism about its growth prospects.
The firm cited Palantir’s robust second-quarter performance, which featured the company’s biggest absolute dollar beat ever at $68 million above the mid-point guidance. Revenue growth accelerated for the eighth consecutive quarter to 48%, up from 39% in the previous period. The company maintains impressive gross profit margins of 80% and has shown consistent revenue growth of 33.45% over the last twelve months.
Piper Sandler highlighted the recently secured 10-year $10 billion Army deal as strengthening the case for further government share gains within the large $1 trillion-plus Defense total addressable market. The company’s U.S. commercial business grew 93% year-over-year, accelerating from 71% previously. InvestingPro analysis shows PLTR maintains a "GREAT" overall financial health score, with particularly strong growth and cash flow metrics. Get access to 20+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The research firm acknowledged that while Palantir carries a rich valuation premium and remains a high-risk investment, its unique combination of growth and margins puts it in a category of its own that warrants such a premium.
Piper Sandler’s increased price target reflects higher calendar year 2030 estimates and rising confidence in Palantir’s growth durability, supported by a 77% year-over-year increase in contracted backlog.
In other recent news, Palantir Technologies reported impressive second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved earnings per share of $0.16, exceeding the forecast of $0.14. Additionally, Palantir’s revenue reached $1 billion, outperforming the anticipated $937.45 million. In a separate development, DA Davidson raised its price target for Palantir to $170 from $115 while maintaining a Neutral rating. The research firm highlighted Palantir as a standout in the software industry and expressed overall positivity about the company. These developments reflect recent progress and analyst perspectives on Palantir’s performance and potential.
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