AI software firm Palantir (PLTR) is heading into earnings with a strong setup, according to Morgan Stanley (MS) analyst Sanjit Singh. Even though software stocks have recently pulled back, Singh says that demand for Palantir’s products remains solid. In fact, industry checks suggest that spending on cloud services and AI software is still growing. Therefore, Palantir is seen as one of the better-positioned names in the sector, especially as companies continue to invest in AI-related projects and consolidate their spending with larger platform providers.
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In addition, the company is seeing accelerating growth in the U.S., along with increased adoption from large customers. As a result, Morgan Stanley believes there is a good chance that estimates could move higher after earnings, especially given the company’s recent momentum. This combination of strong performance and cautious investor positioning following the stock’s pullback creates an attractive near-term setup.
Looking ahead, the long-term outlook also appears increasingly promising. Morgan Stanley noted that Palantir is now on a more credible path toward $10 billion in revenue, supported by continued demand for its AI platforms. However, while the fundamentals are strong, the firm still maintains a Hold rating with a $205 price target.
Is PLTR Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PLTR stock based on 14 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $194.06 per share implies 36.1% upside potential.
