Raymond James Reiterates Market Perform Rating on Palantir Technologies Inc. (PLTR), 'Impeccable Results yet the Best Is yet to Come – Raising Street High Estimates Again'

Raymond James analyst Brian Gesuale reiterated a Market Perform rating on Palantir Technologies Inc. (NASDAQ: PLTR).

The analyst comments "PLTR posted another exceptionally strong 2Q25 and guide that was above our Street high model. The fundamentals were strong with a 7% top-line beat, U.S. commercial growth of 93% and a AEBIT beat of ~15%. The strong AIP momentum and demand across virtually all markets supported management’s raised guide (midpoint $4.15B vs. Street at $4.05B) that was 6.4% higher, AEBIT that was 11.6% better and a new FCF expectation of $1.9B (vs. prior $1.7B). Key metrics also impressed with $843M of U.S. Comm TCV closed (up 4% q/q, and 222%+ y/y), U.S. comm RDV of $2.8B (up 145% y/y), net dollar retention of 128%. The momentum is healthy and driven both by new customer adds (up 43% y/y to 849) and expansion with existing customers as TTM revenue from top 20 increased 30% y/y to $75M/customer. The company is obliterating Rule 40/50 metrics posting 94, is talking about a 10x increase in revenue with a simultaneous reduction in headcount, and has truly established itself as a unicorn in such a way that seeing Palantir execute makes us want to revisit our thesis on Santa Claus and the Easter Bunny! While we are taking our model higher and above the high end of guidance and can’t help but marvel at its performance, we are maintaining our Market Perform rating given a valuation that has expanded from 7x sales in 2023 to 74x sales currently in hopes of finding a better entry point though we acknowledge that fundamental momentum is only gathering steam and the stock will be much higher over time if even half of PLTR’s financial aspirations materialize."

For an analyst ratings summary and ratings history on Palantir Technologies Inc. click here. For more ratings news on Palantir Technologies Inc. click here.

Shares of Palantir Technologies Inc. closed at $160.66 yesterday.

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