Piper Sandler analyst Brent Bracelin initiated coverage of Palantir Technologies (PLTR) stock with a “Buy” rating and a new Street-High price target of $170, which implies 9.8% upside potential from current levels. The analyst foresees significant growth potential for the big data analytics company in its two prime markets: government contracts and U.S. commercial sectors.
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Palantir’s shares have skyrocketed over 104% so far in 2025, backed by rapidly growing demand for artificial intelligence (AI). While other analysts remain skeptical of PLTR’s sky-high valuation, Bracelin appears even more optimistic about Palantir’s future prospects.
Palantir Has a Unique Growth and Margin Model
The analyst noted that Palantir has a “one-of-a-kind” growth and margin model, with potential to reach $24 billion in annual run-rate by 2032. Bracelin added that both of Palantir’s end markets, government and U.S. commercial customers, have a total addressable market (TAM) of around one trillion dollars each. He also recommends that investors watch the stock and buy shares on dips, since he views the company as one of the biggest winners of the AI revolution.
According to Bracelin, the company currently has a roughly $4 billion revenue run-rate and a free cash flow margin exceeding 40%. He forecasts that revenue from Palantir’s U.S. government business could exceed $10 billion by 2030, with its U.S. commercial business reaching $5 billion in revenue by the decade’s end.
Palantir’s U.S. Business Is Expected to Explode
As shown by Palantir’s KPI data from Main Street Data, the company’s government and commercial segments are experiencing robust growth, with the government segment on a significant upward trajectory. During Q1FY25, Palantir’s U.S. government revenue grew 45% year-over-year, while U.S. commercial revenue grew 71% compared to the prior year period.
The company’s strategic focus on AI-driven solutions is driving substantial gains, particularly in the U.S. market, and this momentum is expected to continue into the future.
Is PLTR Stock a Buy, Hold, or Sell?
Currently, analysts remain cautious about Palantir’s long-term outlook. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 10 Holds, and three Sell ratings. Also, the average Palantir price target of $109.50 implies 29.3% downside potential from current levels.
