Morgan Stanley Raises Palantir Price Target to $98

Morgan Stanley analyst Sanjit Singh raised the price target on Palantir Technologies Inc.

(NASDAQ: PLTR) to $98 (from $90) while maintaining an Equalweight rating.

“What Did We Learning from Q1? Palantir Is Firing on Nearly All Cylinders.

After a blowout Q4, we view Q1 results as equally impressive given the broader macro uncertainty and concerns over whether large sized deals in the government and commercial markets would close.

On the government size of the house, YoY revenue growth accelerated to +45% YoY while the company closed 139 deals over $1 million in TCV including 51 deals over $5 million and 31 over $10 million.

Meanwhile, a record $810 million in US Commercial TCV was booked in Q1 – up +183% YoY.

Key areas of revenue outperformance include the US commercial business which grew +71% YoY from +63% in Q4 and international government business accelerated to +46% YoY from +29% in Q4.

The only area of weakness remains international commercial which fell -5% YoY from +3% the prior quarter. This segment likely limited the magnitude of the revenue beat which was 2.5% in Q1 vs.

6.5% in Q4 resulting in +39% revenue growth compared to +36% in Q4.”

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