Citi increased its price target on Palantir Technologies (PLTR) from $115 to $158, while maintaining a Hold rating. The analyst cited the company's strong performance, particularly in the US commercial market, but noted challenges in the international commercial market. Palantir raised its fiscal year 2025 revenue guidance to between $4.142 billion and $4.150 billion.
Citi has increased its price target on Palantir Technologies (PLTR) from $115 to $158, while maintaining a Hold rating. The analyst cited the company's strong performance, particularly in the US commercial market, but noted challenges in the international commercial market. Palantir raised its fiscal year 2025 revenue guidance to between $4.142 billion and $4.150 billion [1].
The latest developments come amidst a surge in demand for Palantir's AI-powered services across various sectors. The company reported a significant jump in its annual revenue forecast, driven by strong demand from governments and commercial businesses. This has propelled Palantir's shares to more than double in value this year, making it the best performer on the S&P 500 [1].
Palantir's US government sales increased by 53% to $426 million, representing over 42% of the total second-quarter revenue. The company's stock has climbed sharply over the past year, outpacing major tech and defense peers. Palantir expects expenses to rise significantly in the third quarter due to seasonal hiring and increased competition for top talent [1].
The company's latest quarterly results also highlighted a $10 billion US Army contract, which is expected to span over a decade. This deal underscores the growing importance of AI in defense strategies and positions Palantir as a key player in the military's modernization push [2].
Despite the positive outlook, analysts caution about a potential disconnect between Palantir's valuation and achievable growth. The stock trades at over 200 times its 12-month forward earnings estimates, compared to AI giant Nvidia's (NVDA.O) 34.81 and the S&P 500's 27.44 [1].
References:
[1] https://www.reuters.com/business/palantir-shares-jump-soaring-ai-demand-powers-forecast-upgrade-2025-08-05/
[2] https://finimize.com/content/palantir-technologies-lands-billion-dollar-army-deal-and-raises-outlook
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