- Mizuho analysts nearly double target price
- Q4 revenues up 31% and 40% for Commercial and Government units
- Stockopedia data puts 2025 PE at over 200
Analysts at Mizuho nearly doubled their target price on Palantir Technologies (PLTR:NASDAQ) after the AI applications star blasted past fourth quarter expectations and significantly upped 2025 guidance.
The company, co-started by prominent Silicon Valley entrepreneur Peter Thiel, a co-founder of PayPal (PYPL:NASDAQ), Founders Fund and an early investor in Facebook, now Meta Platforms (META:NASDAQ), reported $828 million in Q4 revenue, a 36% year-on-year jump, well above Wall Street’s forecast of $776 million.
Growth was driven by strength in both the US Commercial and US Government segments, with government revenue surging 40% to $455 million, while commercial revenue grew 31% to $372 million, both exceeding estimates.
PRICE TARGET DOUBLED
Mizuho analysts raised their target price to $80 from $44 previously, yet here’s the rub… that still implies that the stock’s valuation is stretched to breaking point.
Pre-market data has Palantir’s stock surging more than 18% when Wall Street trading reopens later today, implying a near-$100 share price. Just 12 months ago, the stock traded at below $20, a startling run.
Mizuho concluded that while the company’s AI-driven growth is a key strength, valuation remains a major concern, as it likely will be for retail investors.
Consensus earnings data from Stockopedia has the stock trading on a 2025 PE (price to earnings) multiple of more than 200, although that could come down as upgrades expectations are absorbed into the data.
