Palantir (NASDAQ: PLTR) closed at a record $207.18 on Monday, November 3, rising 3.35% following a strong third-quarter earnings call that reinforced its rapid growth across both government and commercial markets.
The company reported earnings per share (EPS) at $0.21, exceeding the expected $0.17, as well as $1.18 billion in revenue, surpassing the forecasted $1.09 billion. Looking ahead, the software leader now projects fourth-quarter revenue in the $1.327–$1.331 billion range, signaling roughly 61% growth, only a slight moderation from the 63% surge in Q3.
However, despite the impressive numbers and promising guidance, PLTR shares are down more than 7% in pre-market on Tuesday, November 4, sitting at $192.29 at press time as analysts note lingering valuation concerns.
New PLTR stock price targets
Mizuho lifted its Palantir stock price target from $165 to $205 on November 4, albeit while reiterating a “Neutral.” At the same time, the management also raised its full-year 2025 guidance, citing accelerating demand for its Artificial Intelligence Platform (AIP) as the primary catalyst behind the surge in commercial and government bookings.
On the same day, Jefferies upgraded its own forecast from $60 to $70, while reiterating an “Underperform” rating. Even with the price bump, though, the call reflects continued skepticism, as the firm cautioned that Palantir trades at an 83x multiple of estimated 2026 revenue, arguing the premium is difficult to justify even with accelerating fundamentals.
“The fundamentals are rock solid. The valuation is like anything we’ve seen, trading at 90x revenue, so there’s no way you can put any valuation metric on the actual valuation. Again, we’ve never seen anything like this… We feel there’s a better use of capital in other places,” argued Jefferies’ Brent Thill on CNBC.
Similarly, Mizuho noted that the shares trade at 64x projected 2027 revenue, a level well above the rest of the sector. Even so, the note saw Palantir as well-positioned to benefit from long-term tailwinds not only in artificial intelligence but also in new government and industrial partnerships.
RBC Capital also raised its price target to $50 from $45, keeping an “Underperform” rating again due to valuation concerns.
Is Palantir sentiment changing?
The growing concerns are in sharp contrast with some of the more bullish predictions we saw leading up to the earnings call. For instance, a known Palantir optimist, Tom Nash, was arguing on Sunday that growing partnerships with Nvidia (NASDAQ: NVDA) were a crucial advantage, comparing the market to a gold rush.
“Nvidia and Palantir are the picks and shovel sellers in this gold rush. Nvidia’s priced accordingly. Palantir at $500B is a steal once people realize its true value,” Nash posted on X.
A day later, however, Michael Burry disclosed a new filing reporting a $1 billion short position against both stocks, again showing growing valuation concerns.
Similarly, Wedbush Securities analyst Dan Ives made an appearance on Schwab Network, where he criticized skeptics for underestimating “the scale and scope of the AI revolution.” In addition, Ives raised his PLTR target price from $200 to $230, maintaining an “Outperform” rating.
Featured image via Shutterstock
