Mizuho Securities on Wednesday upgraded Palantir Technologies to neutral from under-perform. The Wall Street firm still harbors doubts over the premium valuation of Palantir stock, though.
"While we see many more compelling names to own in software at these levels, we upgrade Palantir to neutral from underperform and raise our price target to 135 from 116," said Mizuho analyst Gregg Moskowitz in a report.
On the stock market today, Palantir stock dipped a fraction to 148.45. Shares in the maker of data analytics software hit a 52-week high of 150.62 in intraday trading on Tuesday. Palantir stock has climbed 96% in 2025.
Second quarter earnings for Palantir stock are due Aug. 4.
"Palantir's recent execution and momentum is stunning, including material upward revisions across its commercial and government segments that we very much underestimated," said Moskowitz in a report. "We also believe Palantir has a legitimate chance to accelerate revenue growth for a fifth consecutive quarter when reporting Q2 results in early August."
But Moskowitz added: "We are equally stunned by the multiple that Palantir has attained, which places its valuation dramatically above anything else in software. While we continue to worry that the shares could suddenly be subject to material multiple reversion at some point over the next few quarters, Palantir's uniqueness demands a great deal of credit. And looking forward, Palantir appears very well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization."
Palantir stock has gained amid views that the company seems poised to win more U.S. government business under the Trump administration. Also, retail investor enthusiasm for generative artificial intelligence plays has boosted Palantir stock, although commercial-related revenue has yet to ramp up.
Palantir stock holds an Accumulation/Distribution Rating of B-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
