Wedbush analyst Dan Ives raised the price target on Palantir Technologies Inc. (NASDAQ: PLTR) to $140.00 (from $120.00) while maintaining a Outperform rating.

The analyst comments "Palantir posted its FY1Q25 results featuring robust beats across the board while raising FY25 guidance yet again as the company continues to capitalize on the AI demand wave with its AIP product moat gaining further traction moving forward. Total revenue came in at $883.9 million (up 39% y/y) well-above the Street’s $862.2 million estimate with the US commercial revenue segment hitting a $1 billion annual run rate seeing 71% y/y growth above the prior period growth metrics of 64% y/y as the company saw unrelenting demand for AIP. US Commercial TCV came in at $810.0 million (up 183% y/y) while the US remaining deal value came in at $2.32 billion (up 127% y/y and 30% q/q) as US enterprise customers continue to leverage PLTR’s marquee products in its portfolio. Total customer count grew 39% y/y and 8% q/q while seeing elevated multi-year multi-million deals in the pipeline with 139 deals of at least $1 million and 31 deals of at least $10 million (prior period of 129 deals and 32 deals, respectively) pointing to greater success with its land and expand strategy. US Government revenue came in at $373.0 million (up 45%), a reacceleration vs. the prior quarter (42% y/y in 4Q24) as the company remains confident in increasing share in US defense budgets due to its meritocracy and pressure-tested environments. We note that the company is gaining traction in Europe with its recent NATO partnership as more organizations look into scaling more use cases across operating systems. Adjusted operating income came in at $390.7 million (margin of 44.2%) above the Street’s 360.4 million estimate (margin of 41.8%) while free cash flow came in at $370.4 million well-above the Street’s $254.3 million as the company looks to continue improving its operating leverage while investing in AIP while seeing its Rule of 40 score increase to 83% vs. 81% in the prior period. We are raising our price target from $120 to $140 reflecting greater confidence in the PLTR growth story while seeing significant traction across both enterprise and federal landscapes with its AIP product moat unmatched in our view. We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years."