Palantir Technologies Inc. (PLTR) PT Raised to $96 at HSBC

HSBC analyst Stephen Bersey raised the price target on Palantir Technologies Inc. (NASDAQ: PLTR) to $96.00 (from $38.00) while maintaining a Hold rating.

The analyst comments: "Palantir released strong 1Q25 and 2025 guidance, implying y-o-y revenue growth of 36% and 31%, non-GAAP operating profit growth of 57% and 38%, and OPM of 41% and 42%, respectively, and guidance came in significantly ahead of consensus and our expectations. With the company witnessing ongoing strength in AI demand in US, we think there is a possibility of a guidance upgrade over 2025. While we were positively surprised by the strong OPM in 4Q24, guidance implies margins normalizing to lower, yet still robust, levels in 2025 and we think the company is approaching a ceiling to OPM, which could restrict EPS growth. Moreover, we think the market is allocating a large valuation premium to AI companies like Palantir which is currently trading at eye-wateringly high valuation (2025e: 151x PE, 6x PEG, 46x EV/Sales). We, therefore, see downward risk of a potential derating from current levels."

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