RBC raises Palantir stock price target to $40, retains underperform

Published 04/02/2025, 09:22
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RBC justified the new price target by pointing to the improved profitability and higher estimates that emerged from the recent guidance. Nonetheless, the firm’s analysts remain cautious, suggesting that the current risk-reward balance is unfavorable. They pointed out that Palantir’s stock is trading at a premium multiple, which could imply limited upside potential from the current price levels, as evidenced by its current P/E ratio of 388.88.Palantir’s recent performance and future outlook have certainly captured the attention of investors and analysts alike. While RBC has recognized the company’s near-term achievements and raised its price target accordingly, the firm’s long-term perspective on the stock remains cautious, underscoring a conservative approach to Palantir’s valuation in the market. For a deeper understanding of Palantir’s valuation and growth prospects, InvestingPro subscribers can access a comprehensive Pro Research Report, which includes detailed analysis of the company’s financial health, valuation metrics, and growth potential among 1,400+ top stocks.

The analysts at RBC acknowledged the company’s performance, noting both Government and Commercial sectors yielded results that exceeded forecasts. However, their stance reflects ongoing concerns regarding Palantir’s growth potential and the distinctiveness of its products in the market. The firm’s analysts expressed skepticism about the company’s conservative approach to its projections, despite the upward revision of the 2025 guidance figures. The company maintains impressive gross profit margins of 81.1% and has demonstrated solid revenue growth of 24.5% in the last twelve months.

RBC justified the new price target by pointing to the improved profitability and higher estimates that emerged from the recent guidance. Nonetheless, the firm’s analysts remain cautious, suggesting that the current risk-reward balance is unfavorable. They pointed out that Palantir’s stock is trading at a premium multiple, which could imply limited upside potential from the current price levels.

Palantir’s recent performance and future outlook have certainly captured the attention of investors and analysts alike. While RBC has recognized the company’s near-term achievements and raised its price target accordingly, the firm’s long-term perspective on the stock remains cautious, underscoring a conservative approach to Palantir’s valuation in the market.

In other recent news, Palantir Technologies (NASDAQ:PLTR) has been the focus of numerous adjustments in stock price targets by various research firms after reporting impressive financial results. Raymond (NSE:RYMD) James maintained a Market Perform rating on Palantir following the company’s exceptional performance, which included a 64% growth in U.S. commercial revenue and an adjusted EBIT that beat estimates by about 19%. The company’s guidance for the coming year was notably optimistic, forecasting revenue and AEBIT above Wall Street’s expectations.

Cantor Fitzgerald, UBS, Baird, and Jefferies all raised their price targets for Palantir, citing strong financial performance and robust growth in the U.S. commercial and government sectors. Despite these positive indicators, most firms, including Raymond James and Jefferies, maintained a neutral rating on the stock, indicating a cautious stance on its current valuation.

Significant contract gains were also reported, with Palantir closing $803 million in U.S. commercial total contract value, marking a quarterly increase of 170%. Additionally, the company secured a significant contract with the U.S. Army, valued at approximately $400.7 million. These recent developments underscore the dynamic performance and growth prospects of Palantir Technologies.

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