Palantir stock price target raised to $200 from $170 at Baird

Investing.com - Baird raised its price target on Palantir Technologies Inc. (NASDAQ:PLTR) to $200.00 from $170.00 on Tuesday, while maintaining a Neutral rating on the stock. The new target aligns closely with Palantir’s current trading price of $207.18, which sits just below its 52-week high of $207.52.

The price target increase follows Palantir’s strong third-quarter results, which marked the ninth consecutive quarter of accelerating total revenue growth. The company reported 63% revenue growth compared to 48% in the second quarter, continuing its impressive 5-year revenue CAGR of 31%.

U.S. commercial and U.S. Government segments remained key growth drivers, expanding 121% and 52% year-over-year respectively, compared to 93% and 53% in the previous quarter. The company maintains impressive gross profit margins of 80.03%, highlighting its operational efficiency.

Palantir also raised its full-year guidance and provided fourth-quarter guidance projecting 61% revenue growth and 53% operating margins, exceeding prior expectations. Analysts forecast EPS of $0.70 for fiscal year 2025, reflecting continued profit momentum.

Despite acknowledging Palantir’s continued revenue acceleration and AI leadership, Baird maintained its Neutral rating, citing valuation concerns as the primary reason for not upgrading the stock. These concerns appear justified given Palantir’s lofty P/E ratio of 684.89 and EV/EBITDA multiple of 811.98. InvestingPro analysis indicates the stock is significantly overvalued compared to its Fair Value, with 22 additional ProTips available to subscribers through the comprehensive Pro Research Report.

In other recent news, Palantir Technologies Inc. reported significant financial results, with revenue growth accelerating to 63% year-over-year in the third quarter of 2025, reaching a revenue scale of $4.7 billion. UBS noted this as Palantir’s ninth consecutive quarter of revenue growth acceleration, prompting the firm to raise its price target to $205 while maintaining a Neutral rating. Mizuho also raised its price target to $205, citing the company’s "stellar" third-quarter results that exceeded expectations by 830 basis points. BofA Securities increased its price target to $255, maintaining a Buy rating due to expectations of accelerated growth driven by the company’s artificial intelligence offerings.

Jefferies adjusted its price target to $70, referencing a boom in U.S. demand and maintaining an Underperform rating. RBC Capital raised its price target to $50, acknowledging Palantir’s strong performance, which included an R40 of 114%. These developments reflect a consensus among analysts about Palantir’s strong recent performance, with varied expectations for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.