Analyst Sanjit Singh of Morgan Stanley maintained a Hold rating on Palantir Technologies (PLTR – Research Report), boosting the price target to $98.00.
Sanjit Singh’s rating is based on a combination of factors that reflect both the strengths and challenges faced by Palantir Technologies. The company has shown impressive growth, with revenue accelerating for the seventh consecutive quarter, driven by strong performance in the U.S. commercial and government sectors. The U.S. commercial business, in particular, demonstrated significant growth, contributing to the overall positive financial results.
However, despite these achievements, Singh maintains a Hold rating due to concerns over the valuation of Palantir’s stock. The stock is currently priced at a high multiple of future free cash flow, which makes it difficult to justify a strong buy recommendation. Additionally, the international commercial segment remains a weak spot, showing a decline in revenue. These factors suggest that while Palantir is performing well, the current stock price may not offer a compelling entry point for investors seeking significant returns.
According to TipRanks, Singh is a 2-star analyst with an average return of 0.0% and a 49.39% success rate. Singh covers the Technology sector, focusing on stocks such as Appian, Domo, and Palantir Technologies.
In another report released yesterday, D.A. Davidson also maintained a Hold rating on the stock with a $115.00 price target.