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Mizuho upgrades Palantir to Neutral on ‘stunning’ momentum

Mizuho upgraded Palantir (PLTR) to Neutral from Underperform with a price target of $135, up from $116. The firm views the company’s recent execution and momentum as “stunning.” This includes material upward estimate revisions across Palantir’s commercial and government segments, says Mizuho, which admits to “very much” underestimating the segments. Palantir has a “legitimate chance” to accelerate revenue growth for a fifth consecutive quarter when reporting Q2 results in early August, the analyst tells investors in a research note. Mizuho still has concerns that the shares “could suddenly be subject to material multiple reversion at some point,” but says Palantir’s “uniqueness demands a great deal of credit.” It believes the company is well positioned to benefit from long-term trends in artificial intelligence.

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