Morgan Stanley raised its Palantir (NASDAQ: PLTR) stock price target from $205 to $233 on Tuesday, November 3, and maintained an “Equalweight” rating on the company.
The bank cited accelerating revenue growth, expanding margins, and rising demand for sovereign artificial intelligence (AI) solutions as key drivers.
Further, the research note highlighted sovereign AI as another potential inflection point for the company, as the technology allows customers to train AI models using their own operational data and ontology.
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Palantir stock target raised as Q3 revenue surges 96%
The bullish call came following Palantir’s third-quarter 2026 results, which saw revenue growth surge 96% and operaiting margins expand by nearly 1,100 basis points year-over-year (YOY), to 61.7%.
Growth was particularly strong across Palantir’s U.S. businesses, where commercial revenue increased 148%, nearly identical to 149% in the second quarter, while U.S. government revenue growth accelerated to 96% from 90% in the previous quarter.
According to the investment bank, Palantir might be looking at a wider range of economically viable AI applications while reducing overall implementation costs, especially by addressing enterprise context problems through the Ontology platform.
Despite analyst optimism and earnings figures, however, Palantir shares dropped 6% in pre-market trading on November 3, extending the weekly losses of 10%.
Palantir revenue forecasts also up
Reflecting on the stock further, Morgan Stanley also raised its 2027 Palantir revenue growth forecast to 65% from 45% and upped its operating margin estimate for the year to 63.5% from 61%.
With Palantir shares declining, however, the market reaction suggests investors still remain concerned about the stock’s elevated valuation, even amid exceptional growth.
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Overall, Morgan Stanley’s PLTR price target still reflects confidence in long-term growth prospects, but its “Equalweight” rating might suggest the bank too remains cautious about the stock’s valuation relative to its potential.
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