Loop Capital Expects Palantir (PLTR) to Beat Earnings Again-Here's Why

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the AI Stocks Investors Should Keep an Eye On. On July 30, Loop Capital reiterated the stock as “Buy” and raised the price target to $178 (from $155). The firm said it is sticking with the stock ahead of earnings on Aug. 4.

“Based on our checks, we expect PLTR to deliver another beat and raise, with revenue outperformance in line with or exceeding the 5-quarter average upside of 4.3% above the midpoint of guidance.” Additionally, we anticipate guidance to increase beyond the past four-quarter average of 2.3%. The hard part is to guess whether that will be enough to satisfy investors who have pushed the stock straight up and to the right — rising 106% ytd and 26% since the 1Q earnings release — which is the kind of chart that gives us pause buying ahead of the print. The company’s eye-popping valuation is supported by the combination of demonstrated AI leadership, scarcity value as one of the few pure-play AI software stocks, and category-leading margins. Market sentiment around AI names remains highly favorable, and Palantir benefits from its unique position at the intersection of artificial intelligence and enterprise software. The company continues to secure significant commercial contracts as pilot programs scale into full production, with AI use cases expanding exponentially across industries.

Additionally, Palantir’s established government footprint and strong ties with senior members of the Trump administration are expected to bolster growth in its federal business, especially as efforts to modernize U.S. government operations and implement strategic policies such as tax reform and defense initiatives advance. Together, these factors have driven best-in-class revenue growth and margins — exemplified by a rule of 81 score in 1Q25 and a 68 score in 2024 — solidifying its position as an AI leader with significant growth potential. Our checks and earlier meeting with management suggest Palantir’s momentum continues, and we expect the stock to move higher over the long term, if only because the firm delivers best-in-class revenue growth plus margins, and faces a decade-plus cycle similar to previous watershed shifts like the PC revolution or cloud computing.”

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

While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.