Despite Strong Q2, Palantir (PLTR) Faces Valuation Doubts from Wall Street

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the High Flying AI Stocks This Week. On August 6, Baird analyst William Power raised the price target on the stock to $170.00 (from $100.00) while maintaining a Neutral rating.

Analysts at Baird noted Palantir’s strong Q2 results which marked the eighth consecutive quarter of accelerating total revenue growth. Revenue growth reached 48% compared to 39% in the first quarter.

The firm highlighted key growth drivers behind the growth.

 ” U.S. commercial and U.S. Government remain key drivers, growing 93% and 53% YOY. The company also laid out ambitious five- year aspirations for increasing revenue 10-fold while improving efficiency.”

Despite Strong Q2, Palantir (PLTR) Faces Valuation Doubts from Wall Street

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Analysts are cautious on the stock despite of revenue acceleration and AI leadership due to valuation concerns.

“While revenue acceleration and AI leadership could continue to drive shares, we have been wary of valuation.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 15 AI Stocks Taking Wall Street by Storm and 15 Hot AI Stocks on Wall Street’s Radar.

Disclosure: None.