Ahead of Q2 Earnings, This Analyst Is Betting Big on ‘Accelerated’ Growth for Palantir. Should You Buy PLTR Stock Here?
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Palantir (PLTR) shares closed higher on Wednesday after Gregg Moskowitz, a Mizuho analyst, upgraded the data analytics company from “Underperform” to “Neutral.”
Moskowitz issued a constructive note in PLTR’s favor today primarily because he expects the AI-enabled software firm to beat expectations in its fiscal second quarter.
Palantir stock has been in a sharp uptrend since early April. In fact, it has more than doubled over the past six months.
Q2 Earnings Could Unlock Further Upside in Palantir Stock
PLTR is scheduled to report its Q2 financial results on Aug. 4. Consensus is for it to report $0.08 of per-share earnings for its June quarter, up more than 150% versus the same quarter last year.
According to Moskowitz, the company’s upcoming earnings release could help Palantir sustain its recent gains, adding it “has a legitimate chance to accelerate revenue growth for a fifth consecutive quarter.”
The Mizuho analyst raised his rating on PLTR shares this morning primarily because the Denver-headquartered firm is seeing significant strength across both of its business segments: government and commercial.
Valuation Remains a Threat to the PLTR Share Price
Investors should note that Moskowitz’ upgrade does not make him particularly bullish on PLTR stock, though.
On Wednesday, the firm’s analyst upwardly revised his price target on the AI stock to $135, which, nonetheless, suggests over 10% downside from current levels.
Mizuho attributed its cautious stance on Palantir shares primarily to valuation concerns, saying “we were stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software.”
Palantir Technologies is currently trading at a forward price-earnings (P/E) ratio of more than 400x while Broadcom (AVGO) is going for 50 only at writing.
How Wall Street Recommends Playing Palantir Technologies
Valuation remains the biggest threat to Palantir stock for the second half of 2025 – prompting a conservative stance among other Wall Street analysts as well.
The consensus rating on PLTR shares currently sits at “Hold” only with the mean target of roughly $106 indicating potential downside of about 30% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.