Morgan Stanley removes Underweight rating on Palantir after ‘blowout’ Q3

Morgan Stanley says the firm’s previous Underweight thesis on Palantir (PLTR) was predicated on maturing government growth, lagging commercial traction, and limited free cash flow revision potential, but the trendlines extending into this quarter proved stronger than expected and the company’s Q3 “blowout” highlights the company’s AI positioning, as well as its “rare Rule of 68 profile,” says the analyst, who is removing the firm’s price target and rating on the shares.