Deutsche Bank Says PLTR Valuation \u2018Even More Reasonable\u2019 Post Q2 Results<\/p>\n
Deutsche Bank said in its note that Palantir is \u201coperating several steps ahead\u201d of the broader software sector in translating AI demand into tangible customer value.<\/p>\n
The firm also argued that the post-earnings setup makes the stock\u2019s valuation appear \u201ceven more reasonable,\u201d saying current levels fail to fully reflect Palantir\u2019s \u201cunparalleled Rule of 155 profile\u201d and its durable opportunity to dominate enterprise AI deployments.<\/p>\n
Why Jefferies Is Still Cautious On PLTR<\/p>\n
Jefferies raised its price target on PLTR to $80 from $70 but maintained an \u2018Underperform\u2019 rating, acknowledging another strong quarter as U.S. business revenue climbed 115% year-on-year.<\/p>\n
However, the firm warned that the \u201csetup gets harder from here\u201d for Palantir as comparisons become significantly tougher over the coming quarters, with growth rates set against much stronger prior-year numbers, while international expansion continues to moderate.<\/p>\n
Jefferies said it remains a \u201cfundamental fan\u201d of Palantir but believes the risk-reward is more attractive in other AI winners.<\/p>\n
Morningstar Says PLTR Has Little Margin For Error<\/p>\n
Morningstar assigned a fair value estimate of $153 on Palantir shares, saying the company continues to boast the strongest combination of growth and profitability in its software coverage universe.<\/p>\n
The firm said Palantir\u2019s results demonstrated \u201cstrength from factory floor to foxhole\u201d and reinforced its view that the software firm\u2019s business thesis continues to strengthen.<\/p>\n
At the same time, Morningstar cautioned that \u201chigh expectations are embedded\u201d in the stock and that there is \u201clittle margin for error.\u201d The firm added that it believes the current share price is adequately capturing the company’s long-term prospects.<\/p>\n
Palantir\u2019s Q2 At A Glance<\/p>\n
Palantir reported earnings per share (EPS) of $0.41 on revenue of $1.94 billion in Q2, beating Wall Street estimates of an EPS of $0.35 on revenue of $1.81 billion, according to Fiscal.ai data.<\/p>\n
\u201cDemand for AI sovereignty has now been unleashed. And Palantir is the only company that has demonstrated it can transform tokens into actual economic value,\u201d said Karp.<\/p>\n
The company forecast revenue in the range of $2.16 billion and $2.164 billion, ahead of a consensus estimate of $2 billion. For the full year 2026, Palantir sees revenue in the range of $8.15 billion and $8.158 billion, beating an estimated $7.72 billion.<\/p>\n
Palantir\u2019s U.S. commercial revenue in Q2 soared 149% year-on-year, while government revenue grew 90% YoY. During the quarter, the company closed $3.373 billion of total contract value.<\/p>\n
What Retail Traders Think Of PLTR Stock<\/p>\n
Retail sentiment on Stocktwits around Palantir was in the \u2018extremely bullish\u2019 territory, with message volumes at \u2018extremely high\u2019 levels.<\/p>\n
PLTR stock<\/a> is down 29% year-to-date and 19% over the past 12 months. The S&P 500 ETF (SPY) is up 22% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 26%.<\/p>\n The Vanguard Morningstar Total Stock Market ETF (VTI) is up 22% during this period, while the Vanguard Morningstar Growth ETF (VUG) is up 17%.<\/p>\n Also See:\u00a0AMD Q2 Earnings Preview: Wall Street Is Watching AMD’s Server CPU Push As Lisa Su Eyes A $220B Market<\/a><\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n
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