Palantir Stock Hits $150: Gregg Moskowitz Expects Continued Growth Amid Valuation Concerns

Palantir stock hits $150, fueled by strong growth in commercial and government segments. Mizuho analyst Gregg Moskowitz upgrades the stock to Neutral from Underperform, citing impressive recent execution and momentum. However, he raises concerns about valuation, noting that Palantir's multiples are dramatically higher than peers. Moskowitz believes the company is well-positioned to benefit from long-term trends but is cautious about the stock's valuation.

Palantir Technologies Inc. (NASDAQ: PLTR) has seen its stock price surge to $150, marking a significant milestone for the company. This upward trajectory is driven by strong growth in both the commercial and government segments. Despite the impressive performance, analysts remain divided in their assessments of the stock's future prospects.

Mizuho analyst Gregg Moskowitz recently upgraded Palantir's stock rating to Neutral from Underperform. Moskowitz cited the company's impressive recent execution and momentum as key reasons for the upgrade. However, he also raised concerns about the stock's valuation, noting that Palantir's multiples are significantly higher than those of its peers [1].

Palantir's stock has been on a steady rise, with a 6.8% increase in the past week alone, pushing it close to the psychologically significant $150 level. The company's valuation has been a subject of debate, with some analysts acknowledging the high price but also predicting substantial growth potential. Dan Ives of Wedbush, who described Palantir as the "Lionel Messi of AI," raised his price target on PLTR stock to $160 from $140, citing the company's positioning in the AI revolution [1].

The company's financials have been robust, with expectations for revenue of $3.89 billion to $3.9 billion for the full year 2025, including its first $1 billion quarter. Analysts expect a 9.6% earnings growth in 2025, a 24% year-over-year (YOY) increase. This growth is attributed to the company's ability to generate more revenue while increasing its operating margins to 36% [1].

However, the stock's valuation remains a concern. Palantir's price-to-sales (P/S) ratio stands at 120.47x, significantly higher than the average multiples of 10x or 20x for software companies like Microsoft Corp. (NASDAQ: MSFT) and Oracle Corp. (NYSE: ORCL). While Palantir's market cap is smaller compared to its peers, its unique positioning as a niche data contractor transitioning to a mainstream enterprise AI leader sets it apart [1].

Despite the valuation concerns, the stock's floor continues to move higher. Analysts have increased their consensus price on PLTR stock by 325% in a single year, from $21.25 to $90.37, reflecting a higher floor for retail investors [1].

In conclusion, while Palantir's stock has seen impressive growth and strong analyst support, the high valuation remains a significant factor for investors to consider. As the company continues to execute on its long-term trends, the stock's valuation and future performance will be closely watched.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/MSFT/pressreleases/33433283/palantir-gets-price-hike-from-wedbush-amid-high-valuation/