DA Davidson has reduced its 12-month price target on Palantir Technologies Inc. (NASDAQ:PLTR) to $180.00 from $215.00 and retained a Neutral rating on the shares.
The analyst move follows Palantir’s fourth-quarter 2025 results, which showed accelerating top-line growth driven by strong U.S. demand for AI solutions. Palantir reported revenue of $1.407 billion for Q4 2025, surpassing expectations, and posted earnings per share of $0.25 versus a forecasted $0.23.
Across the last twelve months the company recorded 47.23% revenue growth and delivered an 80.81% gross profit margin, metrics DA Davidson highlighted while evaluating the company’s outlook. The firm termed Palantir a strong engine for enterprise AI adoption and praised its pace of innovation on the platform, writing that the company "remains well positioned to drive enterprise AI adoption and value as it maintains a rapid pace of innovation on the platform," and calling it "the best story in all of software."
Despite those operational strengths, DA Davidson pointed to valuation as the primary reason for keeping its Neutral stance. The firm noted that Palantir’s after-hours share price was trading at about 93 times calendar year 2026 revenue, a level it described as "an unprecedented premium to any peer." The updated $180 target reflects roughly 113 times DA Davidson’s calendar year 2026 free cash flow estimate for Palantir.
Other broker reactions to Palantir’s Q4 results illustrated a range of views among analysts. Piper Sandler raised its price target to $230, citing the company’s strong AI-related growth and the outsized fourth-quarter performance. Wedbush also kept a positive stance, maintaining an Outperform rating with a $230 price target and saying the company exceeded expectations across metrics.
At the same time, several firms expressed concerns about the valuation attached to Palantir’s shares. Mizuho reduced its price target to $195, acknowledging what it called "fantastic" results but trimming its view because of valuation considerations. Baird upgraded the stock from Neutral to Outperform and set a $200 price target, highlighting Palantir’s AI momentum and its free cash flow potential.
DA Davidson’s adjustment underscores the tension between Palantir’s operational momentum and the premium investors are paying for that progress. While revenue and margin figures impressed analysts, the valuation metrics cited by DA Davidson and other firms remain central to how Wall Street is positioning the stock.
Market participants and portfolio managers will likely weigh Palantir’s expanding revenue base and high gross margin against the stretched multiples noted by DA Davidson and others as they set their allocation and risk parameters.
Contextual note - DA Davidson’s commentary places emphasis on both the company’s ability to capture enterprise AI demand and the caution warranted by current valuation levels. The differing price targets and recommendations from multiple research firms reflect a mixture of optimism about Palantir’s growth trajectory and concern about the premium the market is assigning to that growth.