On Tuesday, Wedbush analysts increased their price target on Palantir Technologies Inc . (NASDAQ:PLTR) shares to $120 from the previous $90, while reiterating an Outperform rating on the stock. The firm's analysts highlighted the company's impressive earnings report, which surpassed Wall Street's expectations, and its 2025 guidance that exceeded investor forecasts. With a current market capitalization of $190.76 billion and trading near its 52-week high of $85.22, Palantir has demonstrated remarkable momentum, delivering a 392% return over the past year according to InvestingPro data.
According to the analysts, Palantir has demonstrated its position as a transformative technology company, one that emerges once every decade to reshape the industry landscape. The company's recent financial performance was described as a significant outperformance that has set a new standard for what investors can expect from the company going forward. InvestingPro data reveals an impressive gross profit margin of 81.1% and robust revenue growth of 24.52% in the last twelve months, supporting this positive outlook.
The analysts emphasized Palantir's role in advancing the artificial intelligence revolution, particularly with its AI Product (AIP) offering, which they consider to have an unmatched competitive moat. They praised the leadership of CEO Alex Karp and his team, stating that Palantir is strategically positioned in what they referred to as the "AI Arms Race."
The sentiment from Wedbush suggests that while some market participants remain skeptical, often due to the inability to fully account for AI's potential in their financial models, Palantir continues to outpace its competitors. The analysts believe that the company's strategic moves are more akin to playing chess, indicating a higher level of sophistication and long-term planning, while others in the industry are playing checkers.
The new $120 price target reflects Wedbush's confidence in Palantir's growth trajectory and its potential to redefine the AI sector. The analysts' comments underscore their belief that Palantir is at the forefront of a new era in technology, likening the company to "the Messi of AI," a reference to the renowned soccer player known for his exceptional talent and game-changing abilities. While trading at a significant premium with a P/E ratio of 388.88, InvestingPro's Fair Value analysis suggests the stock is currently overvalued. For a deeper understanding of Palantir's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which includes over 30 additional key metrics and expert analysis.
In other recent news, Palantir Technologies Inc. has witnessed several significant adjustments in stock price targets following robust financial results. BofA Securities analyst Mariana Perez Mora increased the price target for Palantir to $125, maintaining a Buy rating. HSBC raised their price target for Palantir from $38 to $96, Mizuho (NYSE:MFG) Securities lifted its price target to $80, while RBC increased its price target to $40, all firms maintaining neutral to underperform ratings. These adjustments follow Palantir's strong financial performance, with a reported year-over-year revenue growth of 36% for the first quarter and 31% for the full year of 2025. Additionally, Palantir secured a significant contract with the U.S. Army, valued at approximately $400.7 million. Despite the positive financial performance and raised price targets, most firms maintained a neutral rating on the stock, indicating a cautious stance on its current valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.