Palantir Stock Hits a New Street-High Price Target – TipRanks.com
Palantir (NASDAQ:PLTR) stock was one of last year’s biggest winners and with the way 2025 is shaping up to be, don’t bet against the big data company seeing out this year as one of its champs too.
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The shares were on the rampage again in Tuesday’s session, surging by 24% after the company’s Q4 results and outlook handily beat expectations. Revenue climbed by 36% year-over-year to reach $827.52 million, $46.28 million above the Street’s call. That figure included a 64% y/y jump in U.S. commercial revenue, which reached $214 million, while U.S. government revenue increased by 45% to $343 million.
Amongst other strong metrics, the company completed 129 deals worth at least $1 million, 58 deals valued at $5 million or more, and 32 deals exceeding $10 million. Palantir also achieved a record-breaking $803 million in U.S. commercial TCV (total contract value), representing a 134% y/y increase. At the bottom line, adj. EPS of $0.14 beat the forecast by $0.03.
And the momentum isn’t slowing. Palantir’s Q1 guidance came in well above expectations, with projected revenue between $858 million and $862 million, easily outpacing the Street’s $799.36 million estimate.
For those still thinking Palantir’s 2024 performance will be hard to replicate, Bank of America analyst Mariana Perez Mora says last year was “only a dress rehearsal.”
“The company sees the world ripe for an AI and technology revolution. We see PLTR enabling and leading this revolution in both Commercial and Defense markets,” the 5-star analyst went on to say.
Interestingly, Perez Mora sees another avenue where Palantir can make further headway. The Department of Government Efficiency (DOGE) presents a significant opportunity for “government efficiency enablers,” with Perez Mora seeing Palantir as an “enabler of efficiency and clear winner.” If DOGE initiates an era of commercial-style contracting, digital-first development, and open, agnostic architecture needs, Palantir’s portfolio and “approach to government contracts is already in line.”
Generally speaking, Perez Mora sees Palantir as a different kind of beast to other names operating the space, noting: “With the AI market becoming more crowded with more commoditized solutions; we think Palantir’s value proposition is only becoming more pronounced.”
Moreover, the analyst anticipates greater market value will be assigned to the “AI value-adders vs. commodity distributors,” believing Palantir belongs squarely in the former club.
Perez Mora didn’t just take notice – she took action. The analyst hiked her price target on PLTR to a Street-high of $125, indicating a potential upside of ~20% over the next year. It goes without saying, but Perez Mora’s rating remains a Buy. (To watch Perez Mora’s track record, click here)
Most on the Street, however, think the stock has soared too much for now; the average price target stands at $78.67, a figure that sits 24% below the current share price. On the rating front, based on a mix of 11 Holds, 5 Sells and 2 Buys, the analyst consensus rates the stock a Hold (i.e., Neutral). (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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