Palantir Technologies' (PLTR) Q4 results beat market expectations on a jump in US commercial sales and demand for artificial intelligence, underpinning strong margins and cash flow growth, UBS Securities said Tuesday in a report.
On Monday, Palantir's results "stood in sharp contrast to the mixed results from Microsoft (MSFT) and ServiceNow (NOW) last week," the report said.
"The guidance for strong 54% US commercial revs growth in 2025 is a
positive signal," UBS said.
"In light of DeepSeek, Palantir reaffirmed its views that model costs are falling fast, and performance gaps are narrowing," UBS said. Palantir's pricing structure "may help to insulate it from any resulting AI price deflation," the report said.
UBS raised its price target on Palantir stock to $105 from $80 and affirmed its neutral rating. Several other analysts boosted their price targets.
Palantir shares jumped 25% in recent Tuesday trading. Microsoft gained 0.5%, and ServiceNow fell 1.3%.
Price: 104.43, Change: +20.69, Percent Change: +24.71
