Palantir Technologies Inc (NASDAQ:PLTR) shares are slipping Thursday, even though JPMorgan just initiated coverage with an Overweight rating and a $262 price target. Here’s what you should know.
- Palantir Technologies stock is trading near recent highs. What’s ahead for PLTR stock?
JPMorgan Sees Upside in Palantir
JPMorgan analyst Brian Essex launched coverage on Palantir Thursday with a December 2027 target of $262. Essex argues that businesses have moved past testing AI and now demand real returns. In the analyst’s view, Palantir already delivers them by reshaping how its clients operate.
Essex also points to surging interest in AI sovereignty. Organizations want to own their data, logic, processes and security outright. Palantir hands corporate and government customers the tools to keep that control.
Palantir’s revenue growth sped up to 93% last quarter, the 12th straight quarter of acceleration. Its adjusted operating margin widened to 62%, and free cash flow surged 126%. Essex considers the valuation fair for a company this profitable and fast-growing.
The analyst’s target applies a 55x multiple to $11.7 billion of projected 2028 free cash flow. Essex expects that cash flow growth to cool, averaging 77% a year through 2028.
Essex placed Palantir on the Positive Catalyst Watch ahead of the company’s Nov. 2 report. The analyst’s third-quarter forecasts line up with Wall Street’s. Still, Essex sees room for a bigger surprise if the company executes.
Analysts project earnings of 41 cents per share on $2.18 billion in revenue. Palantir cleared both bars last quarter, posting adjusted earnings of 41 cents against a 35-cent forecast and sales of $1.94 billion against $1.80 billion estimated.
PLTR Shares Are Dipping
PLTR Price Action: Palantir shares were down 0.99% at $194.87 at the time of publication on Thursday, according to Benzinga Pro.
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