Palantir (NASDAQ:PLTR) stock is continuing its record-breaking run, hitting the $150 mark today as investors pile into its rapid growth trajectory.
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That surge is even forcing some of Wall Street’s skeptics to rethink their stance. Among them is Mizuho analyst Gregg Moskowitz, who admits that Palantir’s “recent execution and momentum are stunning.” That performance includes significant upward revisions in both its commercial and government segments, developments that the analyst concedes he “very much underestimated.”
Digging into the numbers, it’s easy to see why. Palantir’s U.S. Commercial segment, which contributes roughly 30% of total revenue, is showing no signs of slowing down. Enterprise adoption of its Artificial Intelligence Platform (AIP) is accelerating, as companies seek better internal data integration and scalable AI tools. Management credits this traction to the growing popularity of AIP boot camps and rising awareness of Palantir’s ability to deliver operational AI across industries like finance, industrials, healthcare, and energy.
Supporting this view, Moskowitz’s recent checks point to a sharp uptick in “enterprise inbound activity,” reinforcing the idea that Palantir could surpass its bold 68% U.S. Commercial growth target for the year.
That strength isn’t limited to the private sector. Palantir’s U.S. Government business, which makes up about 42% of total revenue, is also turning in a robust performance. Ongoing contract wins and strong execution are fueling that growth, while momentum in international public sector deals is gaining steam as well. According to Moskowitz, the company’s government pipeline looks especially resilient given current geopolitical tensions, leading him to project continued Government revenue growth above 40% in the near term.
Still, even as the fundamentals impress, Moskowitz raises a cautionary flag on valuation, noting: “We are equally stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software.”
Indeed, the stock now trades at 2025E-26E EV/Sales multiples of 97x and 77x – far above even fast-growing software or AI peers, which typically trade at 10x to 30x in their peak phases.
Despite these concerns, Moskowitz isn’t dismissing the company outright. The analyst acknowledges that Palantir’s distinct position in the AI and defense landscape warrants “a great deal of credit,” and believes it is “very well-positioned” to benefit from long-term trends like government digital transformation and industrial modernization.
That said, he’s not ready to slap a Buy rating on PLTR stock just yet. While impressed enough to upgrade Palantir from Underperform (i.e., Sell) to Neutral, Moskowitz still sees “many more compelling names to own in software at these levels.” His $135 price target on PLTR implies a downside of about 10% from current levels. (To watch Moskowitz’s track record, click here)
Most of Moskowitz’s colleagues are thinking along the same lines. Based on 9 Holds, 4 Sells, and 3 Buys, the stock claims a Hold (i.e., Neutral) consensus rating. The average price target stands at $103.38, implying the shares will tumble 31.5% in the months ahead. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.