Five-Star Analyst Remains Cautious on Palantir Stock Despite Price Target Increase
Palantir Technologies (PLTR) has garnered attention after HSBC raised its price target on the stock, following the company’s recent quarterly earnings report. Five-star analyst Stephen Bersey emphasized the robust growth of Palantir’s U.S. commercial segment.
Strong Performance in U.S. Commercial Segment
Bersey projected an impressive compound annual growth rate (CAGR) of 59.3% for this segment from 2025 to 2029. This growth is expected to boost revenue to approximately $9.3 billion by the end of that period.
Q3 Earnings Highlights
- U.S. commercial revenue jumped 122% year-over-year, reaching $397 million in Q3 2025.
- This marks an increase from the 92.5% growth recorded in Q2.
- Palantir secured new contracts totaling $1.31 billion in Q3, up from $843 million in Q2.
These achievements suggest a positive trajectory for the company’s revenue run rate. However, Bersey raised concerns about the broader industry climate, where numerous internal AI projects are producing disappointing returns on investment. This could potentially hinder the influx of new deals, though it is not uniquely affecting Palantir.
Analyst Ratings and Market Outlook
Despite these market dynamics, Bersey has maintained a Hold rating on Palantir stock, adjusting the price target from $181 to $197. This cautious stance, paired with the increased target, reflects a balanced view of Palantir’s growth prospects amid evolving risks in enterprise AI investments.
Though the surge in commercial contracts indicates robust business momentum, questions remain regarding the sustainability of this growth.
Current Consensus on Palantir Stock
As of now, analysts hold a consensus rating of Hold on PLTR stock. The breakdown includes:
- 3 Buy ratings
- 11 Hold ratings
- 2 Sell ratings
The average price target stands at $185.20 per share, suggesting that shares are trading close to fair value. Investors are left considering whether Palantir stock presents a good buying opportunity.
