Morgan Stanley Raises Palantir Price Target to $155

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

(NASDAQ: PLTR) to $155 (from $98) while maintaining an Equalweight rating.

“Palantir Has the Winning Recipe to Deploy AI. Wow… is our reaction to Q2 results with nearly every headline metric and KPI accelerating versus Q1 which itself was a very strong quarter.

As Gen AI has captured the collective mindset of tech and society at large over the last few years, it now seems as little coincidence that Palantir has just reported 8 straight quarters of accelerating YoY growth.

To contextualize how impressive the results from Q2 truly are, we agree with CEO Alex Karp’s suggestion to look at the “Rule of 40” which sums revenue growth and operating margin.

This came in at an astounding 94% in Q2 (up from 83% in Q1) consisting of +48% YoY revenue growth and 46% operating margin for a business that has just eclipsed $4 billion scale on a run-rate basis.

The real insight software investors are after is why Palantir has been uniquely able to deliver such best-inclass results.

It is increasingly clear that the recipe for such success lies in the company’s world class capabilities in: 1) software defined data integration/ingestion, 2) creating an ontology that allows AI models to have a true understanding of the underlying inter-relationships between data, transactions, employees and customers, 3) workflow automation and grounding state of the art models in enterprise data using the AIP platform and 4) bringing to bear highly technical engineers to help get customer’s complex use cases into production environments.”

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