Rays: Performance growth continues to "amaze" the market, raised Palantir (PLTR.US) rating to "neutral"

Data analysis and artificial intelligence (AI) company Palantir (PLTR.US) recently received a rating upgrade from Mizuho Securities, from "underperform" to "neutral." The company's strong revenue growth performance exceeded expectations and successfully dispelled market doubts. Mizuho Securities analyst Gregg Moskowitz stated in an investment report, "Palantir's recent business execution and growth momentum are impressive, with the performance upgrades in its government and commercial segments far exceeding our expectations. We believe that Palantir is highly likely to achieve accelerated revenue growth for the fifth consecutive quarter when it announces its second-quarter earnings in early August." According to the plan, Palantir is set to release its 2025 fiscal second-quarter earnings on August 4th. The market generally expects an adjusted EPS of $0.14 and revenue of $9.3929 billion. The software company's performance in the first quarter saw a 39% year-on-year increase, with year-on-year increases of 21%, 27%, 30%, and 36% in the four quarters of the 2024 fiscal year. It is expected that the second quarter of the 2025 fiscal year will maintain a high growth rate of 39%-40%. "However, we are also surprised by Palantir's current high valuation multiples, which far exceed those of other companies in the software industry," Moskowitz added. "Although we still have concerns about a possible valuation correction in the coming quarters, we must acknowledge that Palantir's uniqueness does deserve a premium. Looking ahead, the company is well-positioned in long-term trends such as AI, government digital transformation, and industrial modernization." Mizuho also raised Palantir's target price from $116 to $135. Since the beginning of 2025, Palantir's stock price has doubled, while the iShares Expanded Tech-Software ETF (IGV.US) has only seen a 9% increase during the same period.