Palantir (PLTR) Stock Rises on New Government Contracts and Analyst Upgrades

TLDR

• Palantir stock rose over 3% in after-hours trading after announcing new U.S. government contracts
• Multiple analysts including Wedbush raised price targets to $280 based on commercial growth
• Commercial revenue jumped 40% year-over-year according to latest filings
• Stock reached $185 intraday with market cap approaching $500 billion milestone
• Bank of America’s top analyst reiterated Buy rating with street-high $255 price target

Palantir Technologies is having quite the week. The AI and data analytics company saw its stock climb over 3% in after-hours trading following news of expanded government contract wins.

Palantir Technologies Inc., PLTR

The company announced new U.S. government contracts that boosted its revenue outlook. Investors responded positively to what appears to be growing adoption of Palantir’s AI tools in defense applications.

The Denver-based company also secured a three-year renewal with France’s DGSI domestic intelligence agency. This extends a partnership that has been ongoing between Palantir and French intelligence services.

Wall Street analysts are taking notice. Multiple firms raised their price targets on Palantir stock following the contract announcements.

Wedbush lifted its target to $280, citing strong commercial customer growth. That’s a pretty bullish call considering the stock currently trades around $181.

Bank of America Securities analyst Mariana Perez Mora kept her Buy rating intact. She maintains a street-high price target of $255 on the shares.

Commercial Business Shows Strong Growth

The government contracts grabbed headlines, but Palantir’s commercial business is where things get really interesting. Commercial revenue grew 40% year-over-year according to the company’s latest filings.

That’s the kind of growth that gets analysts excited. It shows Palantir isn’t just a government contractor anymore.

The stock hit $185 during intraday trading before pulling back slightly. Shares are currently changing hands around $181, which puts the company’s market cap near $436 billion.

Palantir’s Q4 guidance exceeded Wall Street expectations. The company is operating with roughly 51% profit margins while growing revenue at a 63% clip.

For context, that’s pretty unusual. Most companies sacrifice margins when they grow that fast.

Stock Performance and Valuation

The stock has been on a tear over the past year. Shares bottomed at $63.40 and peaked at $207.52 during that timeframe.

Current trading volume sits at 32.8 million shares, slightly below the average daily volume of 34.81 million. The stock opened at $185.17 and traded between $181 and $187.78 during the most recent session.

Of 27 analysts covering the stock, 63% rate it a Buy. Another 25.9% have Hold ratings, while 11.1% recommend selling.

The company employs 3,936 people and has been around since 2003. CEO Alex Karp recently made headlines criticizing executives who receive bonuses after poor decisions.

Palantir operates through two main segments: Commercial and Government. The AI platform serves as a central operating system for customers across both divisions.

The company’s price-to-earnings ratio stands at 429.30, which is sky-high by traditional standards. But investors seem willing to pay up for the growth story.

Palantir renewed its contract with France’s DGSI on Monday, extending a relationship that has existed for years. This represents the latest in a series of government wins for the company.

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