Palantir stock price target raised to $50 from $45 at RBC Capital

Investing.com - RBC Capital has raised its price target on Palantir Technologies Inc. (NASDAQ:PLTR) to $50.00 from $45.00 while maintaining an Underperform rating on the stock. Palantir currently trades at $207.18, near its 52-week high of $207.52, after delivering a remarkable 400% return over the past year. According to InvestingPro data, the stock appears significantly overvalued relative to its Fair Value assessment.

The firm acknowledged Palantir’s strong quarterly performance, which included revenue growth of 63% year-over-year and an R40 of 114%, though shares traded down approximately 4% after hours. This recent growth exceeds Palantir’s already impressive 38.79% revenue growth over the last twelve months, with analysts forecasting 45% growth for fiscal year 2025.

RBC Capital noted that Palantir’s results remain predominantly U.S.-centric, with international performance showing limited growth at just 10% year-over-year in the commercial segment, while bookings are heavily concentrated in multi-year U.S. commercial AI contracts.

The analyst expressed concern that these contracts may be pulling forward demand, and despite strong profitability, sees limited visibility into normalized growth once early Artificial Intelligence Platform (AIP) deployments mature.

The new $50 price target is based on 21 times calendar year 2026 estimated sales, which implies 48 times enterprise value to calendar year 2026 estimated free cash flow, according to RBC Capital.

In other recent news, Palantir Technologies reported its third-quarter 2025 earnings, achieving results that surpassed Wall Street expectations. The company posted an earnings per share (EPS) of $0.21, significantly above the forecasted $0.17, representing a 23.53% surprise. Additionally, Palantir’s revenue reached $1.181 billion, exceeding the anticipated $1.09 billion and marking an 8.26% surprise. These results indicate robust financial performance for the quarter. The earnings beat and revenue growth have drawn positive attention from investors. While the company’s stock saw a rise in aftermarket trading, the focus remains on the strong earnings report. Analyst reactions to these results have yet to be detailed in the reports. These developments provide investors with key insights into Palantir’s recent financial health.

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