Loop Capital Raises Palantir Price Target to $155

Loop Capital analyst Mark Schappel raised the price target on Palantir Technologies Inc.

(NASDAQ: PLTR) to $155 (from $130) while maintaining a Buy rating.

“We recently hosted a small group investor meeting with Palantir CFO David Glazer and members of his finance team at the company’s office.

We had an opportunity to view an AIP product demonstration and discuss enterprise AI industry trends, the competitive environment, the firm’s differentiators, and the sluggish adoption of AI in Europe.

We came away from the meeting with increased conviction in the story and increased confidence in our Buy rating and core investment thesis — that Palantir is an early software leader in enterprise AI, which we believe is at a tipping point as small-scale pilots move into production and as AI use cases grow exponentially across all industries.

In terms of the stock, with valuation pushing 48x EV/2027E Revenue, the highest revenue multiple in all of enterprise software, we acknowledge that PLTR is not for the faint of heart.

We think the key to owning PLTR here is that you need to buy into the big picture.

And that picture consists of 1) being exposed to the massive AI market opportunity that’s still in the early days, 2) AI use cases are seemingly endless and have the potential to redefine how companies operate, implying few TAM constraints on growth, and 3) that PLTR will be a leader in this effort.

For those wanting exposure to this dynamic, we think it’s hard to put a price on the opportunity, which is why we are upping our price target to $155.

More tactically,we don’t recommend ‘pushing in all the chips’ here, but instead, suggest establishing starter positions in PLTR, and then adding aggressively on pullbacks.”

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