Palantir Raises Target Price After Beating Earnings Expectations

After Palantir's second-quarter performance exceeded market expectations, several Wall Street firms have raised their target prices for the AI software company. However, as the stock price approaches around $175, market disagreements over its valuation are widening, with investor Michael Burry once again taking a bearish stance.

Multiple Firms Raise Target Prices

Phillip Securities has raised Palantir's target price from $202 to $215, maintaining a "buy" rating. The firm's analysts also increased the company's revenue and net profit forecasts for fiscal year 2026 by 6%, citing stronger-than-expected second-quarter performance and sustained demand for AI products.

Palantir disclosed that its revenue for the second quarter of 2026 was approximately $1.9 billion, primarily driven by demand from U.S. commercial and government clients. According to the data in the article, revenue exceeded FactSet's consensus estimate by 6.8%, with operating profit and profit margins also surpassing expectations by 10.5%.

Phillip Securities believes that Palantir's Ontology platform and AI platform are supporting enterprise automation and driving broader deployment of AI products. The firm did not adjust the weighted average cost of capital and perpetual growth assumptions in its valuation model but raised the target price due to improved performance.

• UBS raised its target price to $220
• Truist Securities raised its target price to $223
• Piper Sandler maintained an overweight rating with a target price of $230

Piper Sandler's higher target price is based on Palantir's 149% year-over-year growth in U.S. commercial business. However, not all firms have turned optimistic. Cantor Fitzgerald only raised its target price to $156 while maintaining a neutral rating; Benchmark also continues to hold a "hold" rating.

Burry Bets on Valuation Decline

Unlike most firms raising target prices, Michael Burry has chosen to bet on a stock price decline through put options. Reports indicate that he purchased Palantir put options expiring in March 2027 with a strike price in the $100 range to gain exposure to potential profits from a stock price drop.

The article notes that Burry's bearish logic is not based on a slowdown in the company's business but rather focuses on valuation levels. According to the pessimistic estimates cited in the article, Palantir's current valuation exceeds 50 times the expected sales for 2026, nearing 100 times free cash flow.

Testing Around $175

Driven by performance, Palantir's stock price has risen to around $175, with short-term attention shifting to whether this rally can continue. The article mentions that the $178 to $180 range is a resistance level above, and if the stock price can consistently stay above this area, the current upward structure is likely to continue.

If there is a pullback, the $165 to $166 range will be the first area to watch, followed by around $158 to $160. The market will continue to seek a balance between two judgments: one side is the performance improvement and firms raising target prices, while the other side is the pullback pressure from high valuations.

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