Deutsche Bank Raises Palantir (PLTR) Target to $200, Keeps Hold on Valuation Concerns

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, Deutsche Bank analyst Brad Zelnick raised the price target on the stock to $200.00 (from $160.00) while maintaining a “Hold” rating. The firm sees shares as increasingly palatable but remains cautious on valuation.

The firm noted that even though it admires the company and this bias is reflected in its target price, valuation remains difficult to justify as investors increasingly scrutinize software companies for stock-based compensation.

Shares are increasingly becoming attractive at 70 times enterprise value to unlevered free cash flow based on 2027 estimates. However, including SBC this is more like 93x, which is why the firm hopes for a better entry point.

Deutsche Bank acknowledged the company’s growing $7.2 billion cash hoard alongside a relatively small $75 million share buyback planned for calendar year 2025.

We do believe the possibility of Palantir growing into its multiple is becoming more likely. Finally, we acknowledge the company’s growing $7.2bn cash hoard with a de minimis share buyback ($75mn in CY25) is attracting attention from shareholders desirous of capital returns. We remain Hold rated almost entirely on valuation and maintain our DCF-derive TP of $200.

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

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Disclosure: None. This article is originally published at Insider Monkey.