Mizuho increased the price target for Palantir Technologies Inc. (NYSE:PLTR) from $22.00 to $24.00, while maintaining an Underperform rating, after the company posted better-than-expected Q2 results, resulting in a stock price surge of more than 13% intra-day today.

The analysts acknowledged that Palantir delivered a strong quarter that exceeded expectations, driven by 27% revenue growth and significant large-deal momentum.

Despite this positive performance, the analysts expressed continued caution, noting that Palantir's stock is now trading at 19-20 times its estimated revenue for calendar year 2025, based on low- to mid-20s expected growth. They emphasized the need for Palantir to consistently demonstrate stronger execution and growth to justify a significantly higher valuation. Due to the inherent unpredictability of Palantir's business, the analysts believe this will be challenging.

As a result, while acknowledging the upward revision of numbers, the analysts reiterated their Underperform rating.