TLDR
- UBS raised Palantir $PLTR to Buy from Neutral, setting a $180 price target following approximately 35% decline from peak levels
- Rosenblatt began coverage with a Buy rating and $150 target, viewing PLTR as an “attractive entry point” after the correction
- Fourth quarter results exceeded projections: EPS $0.25 versus $0.23 forecast, revenue $1.41B versus $1.34B expected, representing 70% annual growth
- Company insiders offloaded more than 1 million shares valued at roughly $142M during the last quarter, reducing insider stake to approximately 9.23%
- Wall Street consensus stands at “Moderate Buy” with mean price target of $191.05, suggesting potential upside of ~38.9%
Palantir $PLTR gained 1.3% during Thursday’s trading session, closing at $135.94, following UBS’s decision to upgrade the shares from Neutral to Buy while establishing a $180 price objective.
Palantir Technologies Inc., PLTR
UBS analyst Karl Keirstead recommended investors capitalize on the opportunity created by the stock’s approximate 35% retreat from recent peak levels. He characterized Palantir as a “premier growth story” within the software sector and noted the company operates “at the nexus of the two most powerful spending trends — AI and Data.”
Keirstead highlighted that channel checks revealed a “very strong demand backdrop,” indicating robust customer adoption continues. UBS anticipates revenue expansion of approximately 70% through 2026, while margins should hold steady in the mid-50% territory.
The shares peaked at $137.51 intraday. Trading volume reached roughly 44.5 million, representing about 13% less than typical daily activity.
Rosenblatt Adds Bullish Perspective With New Coverage
Thursday also saw Rosenblatt analyst John McPeake launch coverage with a Buy recommendation and a $150 price objective.
McPeake characterized Palantir as a “market-disrupting, uniquely positioned AI software leader.” He pointed to the stock’s 33% drop from its October peak as generating an appealing entry opportunity.
He anticipates Palantir will sustain its growth momentum and capture margin benefits as the top line expands. The firm’s gross profit margin currently registers at 82%, while revenue has climbed 56% across the trailing twelve months.
These dual upgrades follow recent optimistic assessments from Mizuho, Freedom Capital, and Robert W. Baird. Wall Street’s consensus currently registers as “Moderate Buy,” reflecting 14 Buy recommendations, 4 Hold ratings, and 2 Sell opinions, yielding a mean price target of $191.05.
Strong Q4 Performance, Though Valuation Concerns Persist
Palantir unveiled Q4 results on February 2nd. Earnings per share reached $0.25, surpassing the $0.23 projection. Revenue totaled $1.41 billion, exceeding the $1.34 billion consensus estimate, representing 70% year-over-year expansion.
Return on equity measured 23.81% while net margin registered 36.31%. Wall Street forecasts full-year EPS of $0.31.
Notwithstanding the impressive figures, the stock trades at a P/E ratio near 216. Such elevated valuation multiples provide minimal cushion should execution falter.
The 50-day moving average rests at $161.79, while the 200-day moving average stands at $170.49. Current market capitalization totals $324 billion.
Regarding institutional positioning, hedge funds and institutional investors control 45.65% of outstanding shares. Multiple smaller firms expanded their stakes in recent quarters.
One notable concern: company insiders divested over 1.05 million shares valued at approximately $142 million during the previous quarter. Insider Ryan Taylor offloaded 19,988 shares on February 20th at $133.72. Insider Stephen Cohen disposed of 327,088 shares that same date, trimming his stake by 99.82%.
Current insider ownership measures 9.23%.
On a positive note, DISA awarded Palantir’s PFCS Forward provisional Impact Level 6 authorization, enabling deployment across the Department of Defense’s most classified cloud environments. Additionally, Rackspace received designation as a dedicated implementation partner for Palantir’s Foundry and AIP platforms.
As of Thursday’s market close, PLTR settled at $135.94.
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