Key takeaways

  • Rosenblatt Securities has raised its price target for Palantir (NASDAQ: PLTR) to $260.00, suggesting a potential 30.8% upside from its previous trading price.
  • Despite a consistent record of beating quarterly earnings expectations, investors are looking for stronger business growth and material revenue contributions from recent partnerships in the upcoming earnings report.
  • Analyst sentiment remains largely positive, with an average brokerage recommendation between "Strong Buy" and "Buy," but the stock's high market valuation of approximately $457.50 billion necessitates clear evidence of future growth.

Palantir (NASDAQ: PLTR) is a software company that helps governments and businesses analyze data and use AI. John McPeake of Rosenblatt Securities raises his price target for Palantir to $260.00. With the stock at $198.84 when the target is published, that implies about 30.8% upside. A price target is an analyst’s estimate, not a guaranteed future price.

Palantir is scheduled to report earnings on November 2. Analysts expect $2.18 billion in revenue and adjusted earnings of $0.41 per share. Adjusted earnings exclude certain costs to give investors another view of profit. Palantir has beaten quarterly earnings expectations eight times in a row, while 22 analysts have raised their per-share estimates and none have cut them.

Those higher estimates make the next report more demanding. Demand for sovereign AI, which lets governments retain control over their data and systems, could support Palantir’s business. Still, its recent partnerships have yet to show a clear, material contribution to revenue. Another earnings beat may not satisfy investors unless it also shows stronger business growth.

Other analysts are generally positive. As highlighted by Zacks Investment Research, Palantir’s average brokerage recommendation is 1.71 on a five-point scale, between “Strong Buy” and “Buy.” Of 31 recommendations, 21 are “Strong Buy” and one is “Buy.” These ratings show analyst sentiment, but they do not ensure the stock reaches Rosenblatt’s $260.00 target.

The stock trades near its 52-week high of $212.94, with a market value of approximately $457.50 billion. That market value reflects the share price multiplied by the number of shares outstanding. At this level, investors are paying for expectations of substantial future growth, making evidence of revenue from newer partnerships especially important.