UBS raises Palantir stock price target to $105 on strong growth

On Tuesday, UBS analyst Karl Keirstead increased the price target for Palantir Technologies Inc . (NASDAQ: NASDAQ:PLTR) to $105 from the previous target of $80, while the firm retained a Neutral rating on the stock. The adjustment follows Palantir’s recent financial performance, which revealed significant revenue growth and exceeded expectations. According to InvestingPro data, the stock is currently trading near its 52-week high of $85.22, with a remarkable 392% return over the past year. InvestingPro’s Fair Value analysis suggests the stock may be overvalued at current levels.

Palantir’s recent financial results demonstrated a robust 36% increase in total revenues, surpassing the 3-4% revenue beat seen in the three preceding quarters with a substantial 7.3% beat. The company’s Total (EPA:TTEF) Contract Value (TCV) in the U.S. commercial sector saw an impressive 134% surge. These strong figures translated into notable improvements in margins and cash flow, with InvestingPro data showing an impressive gross profit margin of 81.1% and steady revenue growth of 24.52% over the last twelve months. InvestingPro subscribers have access to 18 additional key insights about Palantir’s financial health and growth prospects.

Keirstead highlighted the company’s forward-looking guidance, which predicts 36% and 31% growth for the first quarter and full year of 2025, respectively. These forecasts are considerably higher than even the most optimistic market projections. Particularly noteworthy is the expected 54% growth in U.S. commercial revenues, a figure that stands out in the analyst’s view.

Following the release of these figures, Palantir’s shares showed a significant increase, indicated to be up by 23%. Despite the stock now trading at 116 times UBS’s revised 2026 free cash flow (FCF) estimate, the firm’s stance remains Neutral on Palantir’s shares. Keirstead’s commentary underscores the impressive performance and financial results reported by Palantir, which sharply contrasted with the mixed outcomes from other tech giants like Microsoft (NASDAQ:MSFT) and ServiceNow (NYSE:NOW) in the previous week.

In other recent news, Palantir Technologies reported robust fourth-quarter earnings, exceeding previous expectations and prompting Baird to raise its stock price target from $70 to $100. The company’s growth was mainly driven by its U.S. commercial and government sectors, which saw year-over-year increases of 64% and 45%, respectively. Analysts from Jefferies, DA Davidson, and BofA Securities also increased their price targets for Palantir, while Citi maintained a Neutral rating with a $42.00 price target.

Despite these positive developments, some analysts, like those at Baird and Jefferies, expressed caution due to high valuation multiples. Palantir also secured a significant contract with the U.S. Army, valued at approximately $400.7 million. In related news, Chinese AI startup DeepSeek’s chatbot became the most downloaded app in Apple (NASDAQ:AAPL)’s App Store, despite an audit by NewsGuard indicating a low accuracy rate in delivering news. These are the most recent developments involving Palantir Technologies.

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