Palantir Technologies (NASDAQ:PLTR) shares surged 22.86% to $102.88 in pre-market trading as of 08:58 a.m. ET Tuesday after the company reported strong Q4 earnings and an optimistic outlook that exceeded expectations.
Earnings and Outlook
Palantir’s Q4 revenue grew 36% year-over-year, marking its sixth consecutive quarter of accelerating growth. The increase was driven by a 64% rise in U.S. commercial revenue and a 45% gain in U.S. government contracts. For Q1 and full-year 2025, the company expects revenue growth of 35%-36% and 31%, respectively, exceeding analyst expectations of mid-20% growth.
Analyst Reactions
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Bank of America reiterated a Buy rating and raised its price target to $125 from $90, citing Palantir’s strong AI positioning and operational data focus.
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Morgan Stanley upgraded the stock to Equal-weight from Underweight, increasing its price target to $95 from $60, acknowledging its accelerating fundamentals.
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Jefferies maintained an Underperform rating but raised its price target to $60 from $28, highlighting strong fundamentals but questioning valuation sustainability.
Analysts see Palantir as a leader in AI-driven commercial and defense applications, with expectations for continued growth in 2025 and beyond.
This article first appeared on GuruFocus.
