STOCKS | Morgan Stanley Raises Palantir Price Target to $233, Citing AI-Driven Revenue Growth

On November 3, Morgan Stanley raised its price target for Palantir Technologies (PLTR) to $233 from $205 and maintained its “hold and wait” rating. According to Sina Finance, the bank said strong momentum in Palantir’s AI business and expanding demand from corporate and government customers had accelerated revenue growth for a 13th consecutive quarter. In the third quarter, revenue grew 96% year over year, while the operating margin rose nearly 11 percentage points to 61.7%; the revenue growth rate and operating margin totaled 158%. Morgan Stanley said Palantir’s U.S. commercial revenue grew 148% year over year in the third quarter, while growth in U.S. government revenue accelerated to 96% from 90% in the second quarter. The bank also identified sovereign AI demand as a new growth driver. Palantir allows customers to post-train open-weight AI models using their operational data, aiming to improve model performance and lower application costs while retaining control over the data and models, thereby broadening AI adoption among companies and government agencies. Based on the company’s performance and AI prospects, Morgan Stanley raised its forecast for Palantir’s 2027 revenue growth to 65% from 45% and its operating margin forecast to 63.5% from 61%. The bank said Palantir’s competitive advantages in enterprise data integration and AI model deployment position it to benefit from the growing adoption of open-weight models.