Palantir Technologies (PLTR) has been on a wild ride. Despite falling 6.6% over the past week and 14.8% over the past month, the stock has still soared an impressive 115.1% over the last 12 months. At today’s last close of $165.33, Wall Street’s overall stance is cautious, with an analyst consensus of “Hold.” Yet the average 12‑month price target of $192.88 still points to meaningful upside from current levels.
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The latest voice to weigh in is Paul Chew of Phillip Securities Research, who has just initiated coverage on Palantir with a Buy rating and a bold price target of $208. That target suggests further room to run beyond the current consensus, reflecting his conviction that the company is still in the early stages of capturing a rapidly expanding market. TipRanks data show Chew as a strong performer: this N‑star analyst ranks 351 out of 11,984, with a success rate of about 68.5% and an average return of 22% per rating, lending weight to his bullish call.
Chew’s thesis centers on Palantir’s ability to turn data and artificial intelligence into real business value. Founded in 2003 and based in the U.S., Palantir builds analytics software that helps large organizations integrate and analyze massive datasets to improve decision‑making and operations. Its customer base spans government agencies and commercial enterprises across a wide variety of industries. According to the report, Palantir has captured only around 2.4% of a 2020 total addressable market estimated at $119 billion, and with AI software growing at more than 25% annually, he argues that the company’s runway for growth remains substantial.
On the numbers, Chew forecasts group revenue to rise 47% year over year to $4.2 billion in FY25, with net profit nearly doubling—growing 1.9 times in the same period. Commercial revenue is expected to grow 51%, outpacing government revenue at 43%, driven by accelerating adoption of Palantir’s AI Platform (AIP) and its Ontology‑based tools that speed up deployment and expand use cases. In the United States, which already accounts for 66% of total revenue, growth is projected to accelerate 66% in FY25, helped by surging U.S. commercial deal sizes and robust government demand amid geopolitical tensions and rising intelligence spending.
Chew also highlights Palantir’s financial strength and valuation. The company is debt‑free, cash‑rich, and expected to hold $8.4 billion in cash and equivalents by FY25, more than 80% of total assets, with operating cash flow projected to grow about 80% year over year and a cash flow margin rising toward 50% while capital spending remains minimal. His discounted cash flow model, using an 8.3% WACC and 8% terminal growth rate, supports the $208 target price. With Palantir’s forward P/E at 170x—below its negative one standard deviation level of 190x—he sees room for a valuation re‑rating as fundamentals and AI‑driven demand continue to improve. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.