Raytheon awarded $71 million in Navy contracts for missile systems
Investing.com - RBC Capital raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $45.00 from $40.00 on Tuesday, while maintaining an Underperform rating on the stock. The stock, currently trading near its 52-week high with a beta of 2.6, has delivered an impressive 567% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.
The price target increase follows Palantir’s quarterly report, which showed total revenue of $1,004 million, representing 48% year-over-year growth and exceeding consensus estimates by approximately 7%.
U.S. Commercial business was highlighted as the standout performer, accelerating to 93% year-over-year growth and now contributing 31% of revenue, up from 23% a year ago. The Government segment grew 53% year-over-year, bolstered by recent wins including a 10-year Army deal worth up to $10 billion.
The company delivered an adjusted operating margin of 46% and free cash flow margin of 57% for the quarter. Following these results, Palantir raised its 2025 guidance ahead of consensus expectations.
Despite the strong performance, RBC Capital expressed concerns about the durability of momentum driven by Palantir’s Artificial Intelligence Platform (AIP), noting an "unfavorable risk-reward" profile as the basis for maintaining its Underperform rating.
In other recent news, Palantir Technologies Inc. reported impressive second-quarter results, with revenue growth of 48% year-over-year, surpassing $1 billion for the first time. This marks the fifth consecutive quarter of accelerating revenue growth, exceeding Wall Street’s expectations. Analysts have responded positively, with Morgan Stanley (NYSE:MS), Mizuho (NYSE:MFG), Wedbush, BofA Securities, and Piper Sandler all raising their price targets for the company. Morgan Stanley raised its target to $155, citing acceleration in key metrics, while Mizuho increased its target to $165, emphasizing strong growth. Wedbush set a new target of $200, highlighting significant demand for Palantir’s AI products. BofA Securities raised its target to $180, maintaining a Buy rating due to the company’s strong performance. Piper Sandler also increased its target to $182, noting Palantir’s robust quarterly results and substantial revenue beat.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.