Palantir price target raised to $155 from $130 at Loop Capital

Loop Capital raised its price target on Palantir Technologies Inc . (NASDAQ:PLTR) to $155.00 from $130.00 on Thursday, while maintaining a Buy rating on the stock. The stock, currently trading at $135.70 and near its 52-week high of $140, has delivered an impressive 473% return over the past year. The adjustment follows a meeting between Loop Capital and Palantir CFO David Glazer at the company's office.

During the meeting, Loop Capital viewed a demonstration of Palantir's AIP product and discussed enterprise AI industry trends, competitive dynamics, and the company's differentiators. The firm also addressed the slower adoption of AI technologies in the European market.

Loop Capital expressed increased conviction in Palantir as "an early software leader in enterprise AI," which the firm believes is "at a tipping point" as pilot programs move into production and AI use cases expand across industries. The firm acknowledged Palantir's high valuation at 48x EV/2027E Revenue, calling it "the highest revenue multiple in all of enterprise software." According to InvestingPro data, the company maintains impressive gross profit margins of 80% and has grown revenue by 33.45% over the last twelve months, though current valuations suggest the stock is trading above its Fair Value.

The investment thesis supporting the higher price target centers on three key factors: exposure to the early-stage AI market opportunity, the "seemingly endless" potential AI use cases with "few TAM constraints on growth," and Palantir's position as a leader in the enterprise AI space.

Loop Capital recommended investors establish "starter positions" in Palantir rather than "pushing in all the chips," suggesting they add "aggressively on pullbacks" to build their holdings in the company. For a deeper understanding of Palantir's valuation and growth prospects, InvestingPro offers comprehensive analysis with over 20 additional investment tips and a detailed Pro Research Report, helping investors make more informed decisions about this rapidly growing AI leader.

In other recent news, Palantir Technologies has been actively involved in several significant developments. The company has entered into a multi-year partnership with Italian paper manufacturer Fedrigoni to enhance digital capabilities, focusing on stock optimization and demand forecasting. This collaboration aims to improve Fedrigoni's operational efficiency through the integration of Palantir's advanced AI technology. Additionally, Palantir is collaborating with Surf Air Mobility to develop the SurfOS software suite, which aims to centralize industry data and enhance efficiency in the air mobility sector.

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In terms of financial analysis, Citi has maintained a neutral rating on Palantir, expressing optimism about the adoption of its Artificial Intelligence Platform, particularly in the financial services sector. Mizuho has raised the price target for Palantir stock to $116.00, citing strong recent execution and upward revisions to forecasts, though it maintains an Underperform rating. Meanwhile, Palantir has urged U.S. lawmakers to establish a comprehensive federal data privacy and security law, emphasizing the importance of consumer rights and responsible innovation. These recent developments highlight Palantir's strategic efforts in expanding its partnerships and influencing regulatory frameworks.

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