Analysts liked what they heard from Palantir after the software company reported another strong quarter and issued rosy guidance. The software platforms company reported revenue expansion of 36% in the fourth quarter, while CEO Alex Karp lauded its use of artificial intelligence to foster growth. The company’s earnings per share also topped analyst expectations. For the full year, Palantir expects sales in the range of $3.74 billion to $3.76 billion, while analysts polled by LSEG forecast $3.52 billion. Shares surged more than 18% in the premarket following the results. Despite the strong results, many analysts maintained a cautious tone on the company overall, with several holding on to their hold and underperform-equivalent ratings. Here’s what they had to say. Bank of America, buy rating, $125 per share price target BofA’s forecast implies more than 43% from Monday’s close. “PLTR’s focus on operationalizing data, establishing high-fidelity digital enterprise-twins, and accelerating decision making is a winning formula,” analyst Mariana Perez Mora said. “We expect further market-value being awarded to the AI value-adders vs. commodity distributors and stand firmly that PLTR will remain a value adder.” Jefferies, underperform rating, $60 per share price target Analyst Brent Thill’s forecast equates to about 28% downside moving forward. “Fundamentals have been strong and we are constructive on the accelerating U.S. momentum, but CY25 [revenue] guide implies 31% growth vs 29% in CY24, and PLTR would need to[accelerate] growth to 50% for 4 years and trade at 18x CY28E [revenue] just to hold its stock price,” Thill said. UBS, neutral rating, $105 per share price target Analyst Karl Keirstead noted that UBS was “impressed with the fundamentals” from Palantir, and his price target implies more than 25% upside. “In light of DeepSeek, Palantir reaffirmed its views that model costs are falling fast and performance gaps are narrowing. In our view, Palantir’s pricing structure may help to insulate it from any resulting AI price deflation,” Keirstead said. Morgan Stanley, equal weight rating, $95 per share price target Morgan Stanley’s outlook calls for more than 13% upside for Palantir. “Given the strength of the outlook, we acknowledge that we were wrong about our core fundamental catalyst of slowing growth below the 30% level due to the tougher compares in 2025,” analyst Sanjit Singh said. “This leaves us with valuation as the primary remaining concern.”
