Morgan Stanley Hikes the Price Target on Palantir Technologies’ Stock
Palantir Technologies received a significant boost as Morgan Stanley analyst, Sanjit Singh, raised its price target. The new target of $115 from $95 implies a 31% upside potential from current levels.
- Singh maintained his “Buy” rating, signaling optimism about Palantir’s future performance.
Singh’s Views on PLTR Stock
The price target hike followed Palantir’s positive outlook presented at the recent ICR conference. Singh is encouraged by the company’s potential for over 30% revenue growth in 2025, driven by increasing government and commercial contracts.
- Palantir’s focus on big data and AI analytics further bolstered Singh’s confidence in its future.
Interestingly, Singh’s perspective on Palantir has shifted drastically in just two months. In January, he had a “Sell” rating with a $60 target. After Q4 earnings in February, he upgraded his rating to “Hold” and set the target at $95. Now, he’s raised the target to $115.
What’s Next for Palantir Stock?
Despite the positive outlook, some investors are concerned about potential cuts in defense budgets, which could impact Palantir’s growth. However, the company’s advanced suite of products, such as Foundry, Gotham, Edge AI, and AIP, continue to see strong demand, thanks to their superior AI capabilities.
- This ongoing demand supports the company’s growth prospects, even amid concerns over defense spending cuts.
In a surprising move, Palantir stock dropped when CEO Alex Karp revealed plans to sell $1.23 billion worth of stock by September 2025.
- However, Karp’s Rule 10b5-1 trading plan with the SEC showed that he reduced his planned sale significantly—from 48.9 million shares to 9.98 million shares, alleviating concerns.
This shift in Karp’s stock sale plan could reassure investors about the company’s long-term prospects.