Palantir Technologies (PLTR) is gearing up for its Q2 earnings, due August 4, and Loop Capital Markets analyst Mark Schappel is bullish about the stock. The Top-rated analyst raised his price target on PLTR stock to $178 (12.5% upside) from $155, while maintaining a Buy rating. His bullish stance reflects confidence in the AI software firm’s ability to beat estimates and continue to grow rapidly. The stock was up 1.5% on Wednesday.
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Analyst Expects a Beat-and-Raise Quarter for PLTR
Schappel expects Palantir to beat its Q2 earnings and raise its guidance again, continuing a trend of strong performance. On average, the company has topped revenue guidance by 4.3% and raised future guidance by 2.3% over the past five quarters.
However, with Palantir stock up 109.32% year-to-date, the analyst said that it is unclear if another beat will excite investors.
Nevertheless, he believes that the stock’s high valuation is justified by Palantir’s strong position in AI and strong profit margins.
Also, Schappel noted that Palantir is winning more commercial contracts as its AI pilot programs expand into full-scale deployments. It even benefits from a solid government business, helped by close ties to Trump-era officials and ongoing efforts to modernize federal systems. The Top analyst pointed to potential boosts from strategic policies like tax reform and defense initiatives.
Overall, he sees Palantir as part of a big, long-term tech trend. Based on his research and discussions with management, he believes the stock will keep rising.
Palantir Q2 Earnings Expectations
With Q2 earnings looming, Palantir is drawing bullish attention. The company stands out in the Tech sector thanks to its mix of AI expertise, strong government connections, and top-tier financial position.
Currently, analysts expect Palantir to report earnings of $0.14 per share, compared with earnings of $0.09 in the prior-year quarter. Further, the company is expected to post revenue of $939.33 million in Q2, up from $678.13 million in the year-ago quarter.
Is PLTR Stock a Good Buy?
Turning to Wall Street, PLTR stock has a Hold consensus rating based on four Buys, ten Holds, and three Sells assigned in the last three months. At $111.14, the average Palantir stock price target implies 29.95% downside potential.
