Mizuho Boosts Palantir’s PT to $135 Ahead of Q2 Earnings

Sky-High Valuation, but Robust Growth Story Appears Intact; Upgrade to Neutral

“PLTR’s recent execution and momentum is stunning, including material upward revisions across its commercial and government segments that we very much underestimated. We also believe PLTR has a legitimate chance to accelerate revenue growth for a 5th consecutive quarter when reporting 2Q results in early August.

That said, we are equally stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software.

While we continue to worry that the shares could suddenly be subject to material multiple reversion at some point over the next few quarters, PLTR’s uniqueness demands a great deal of credit.

And looking forward, PLTR appears very well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization.

While we see many more compelling names to own in software at these levels, we upgrade PLTR to Neutral from Underperform and raise our PT to $135 (from $116).”

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