Palantir (NASDAQ: PLTR) has seen a remarkable surge following its latest earnings report, closing Monday at $83.74, up 1.52% for the day. The stock then skyrocketed past $100 after hours, in pre-market trading, it reached $99, a stunning 18.22% gain.
Currently trading near its 52-week high of $85.22, Palantir has delivered a staggering 392% return over the past year, drawing the attention of Wall Street analysts who have adjusted their price targets accordingly.
Earnings blowout sparks bullish revisions
Palantir’s Q4 2024 results exceeded expectations across the board, reinforcing investor confidence in its long-term growth trajectory. The company reported an adjusted EPS of $0.14 (vs. expectations of $0.11) and revenue of $827.5 million, a 36% year-over-year increase, well above the estimated $775.9 million.
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Looking ahead, Palantir issued strong guidance for Q1 2025, with projected revenue between $858M and $862M, far surpassing the Street’s expectation of $802.9M. For full-year 2025, Palantir anticipates revenue in the range of $3.74B to $3.76B, alongside an adjusted operating profit forecast of $1.55B to $1.57B—both significantly higher than analysts’ prior estimates.
Wall Street’s mixed response
UBS analyst Karl Keirstead raised his Palantir price target to $105 from $80, maintaining a ‘Neutral’ rating. In his research note, Keirstead highlighted the company’s 36% revenue growth, an outsized 7.3% revenue beat, and US commercial total contract value (TCV) growth of 134%, all of which contributed to Palantir’s massive earnings surprise.
However, he tempered enthusiasm by pointing out that the stock now trades at 116x his revised 2026 free cash flow (FCF) estimate, reinforcing his decision to stay Neutral despite the strong print.
At Morgan Stanley, analyst Sanjit Singh took a more positive stance, upgrading Palantir to ‘Equalweight’ from Underweight and raising the price target to $95 from $60. Singh acknowledged that he had underestimated Palantir’s ability to sustain revenue growth above 30%, despite tougher comparisons in 2025. While he still sees Palantir’s valuation as ultra-premium, he believes there are no immediate downside catalysts over the next three to four quarters, justifying his more neutral outlook.
Meanwhile, Raymond James analyst Brian Gesuale reiterated his ‘Market Perform¡ rating, pointing out that Palantir’s Q4 topline beat of 4.1% and U.S. commercial growth of 64% showcased strong momentum across all business segments. He was particularly bullish on Palantir’s adjusted free cash flow expectations, which have now been guided at $1.6 billion for 2025, representing a 43% margin.
Bears stay cautious with PLTR
Not everyone on Wall Street is buying into the rally.
RBC Capital Markets analysts remain skeptical, raising their price target to just $40 while maintaining an ‘Underperform’ rating. They argue that Palantir’s current valuation remains excessive, with a price-to-earnings (P/E) ratio of 388.88, significantly higher than most of its peers in the software space. Their primary concern lies in the risk-reward balance, suggesting that much of Palantir’s upside has already been priced in.
Similarly, Jefferies analyst Brent Thill took a cautious stance, raising his price target to $60 from $28 but maintaining an ‘Underperform’ rating. Thill expressed concerns that Palantir’s current valuation leaves limited room for future gains, particularly if growth expectations moderate in the coming quarters.
Despite some skepticism, Palantir’s near-term outlook remains overwhelmingly strong, with U.S. commercial revenue expected to surpass $1.08 billion in 2025. The company’s momentum in AI-driven enterprise solutions, combined with its strong government contracts and expanding private-sector footprint, suggests continued growth.
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