Palantir Stock Rises After Goldman Sachs Upgrade
On Thursday, Palantir Technologies (NASDAQ: PLTR) rose by approximately 3% despite a broader market downturn. The stock's performance was attributed to an upgrade from Goldman Sachs analyst Gabriela Borges, who raised her rating for the company to 'buy' with a $230 price target. Borges highlighted Palantir’s strong financials: it generated $6.2 billion in revenue over the past 12 months and has achieved annual recurring revenue (ARR) of $8 billion, growing at an impressive rate of 100% per year. While investors are paying a high multiple for this growth — with a PEG ratio around 1.6x — Borges argues it is justifiable if the company can maintain its momentum. The analyst also pointed to Palantir’s potential in the emerging market for sovereign AI systems and bespoke applications, where she sees the firm as well-positioned due to its 'AI forward-deployed engineers.' Additionally, while still expensive by traditional metrics, Borges notes that on a price-to-free cash flow basis, the stock appears relatively more attractive.
Tickers: $PLTR
Topics: Artificial Intelligence Defense Sector Stock Analysis