Palantir (NASDAQ:PLTR) is a controversial name because its powerful data analytics software, used by governments and corporations, raises ethical concerns around privacy, surveillance, and the handling of personal information. On Wall Street, however, the conversation quickly shifts from ethics to economics, with the spotlight on the company’s lofty valuation.
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The stock is valued at under $430 billion, which puts its forward price-to-sales ratio close to 100 when pitted against its projected full-year revenue. Even with the massive growth on tap and outstanding profit margin profile, that’s an exceptionally high premium for a software company.
But Bank of America’s Mariana Perez Mora, an analyst ranked amongst the top 2% of Street stock experts, has a short and sharp retort to that line of thought: “If it works, it’s not expensive.”
And according to Perez Mora, everything at Palantir is working just fine right now, particularly its FDEs (forward deployed engineers), which remain the “key differentiator.”
The analyst sees AI FDEs as an “accelerator of growth.” These engineers work closely with clients to implement Palantir’s software, tailor AI solutions to specific workflows, and address complex operational challenges. By embedding these “breakthrough capabilities” in-house, Palantir can scale more efficiently, empower engineers to focus on the most difficult problems, and attract more customers to use its operating system rather than building their own. Beyond driving adoption, FDEs enable both Palantir and its clients to explore new use cases, extending the value of the platform. As a result, Perez Mora now expects Commercial sales to surpass $10 billion by 2030, with a 2025–30 CAGR rising from 38% to 40%.
Meanwhile, as part of Trump’s UK visit, Palantir announced a strategic partnership with the UK Ministry of Defense. The five-year deal, worth up to £750 million, is the company’s first billion-dollar contract outside the US and builds on its existing work with the NHS and MOD, reflecting growing demand from US allies. Palantir’s Maven Smart System usage has surged in the US – up eightfold since early 2024 – and was chosen by NATO in April to support intelligence, target recognition, battlespace awareness, and decision-making. Perez Mora expects other countries will increasingly adopt Maven as their digital battle-management system, benefiting from both interoperability with US and allied forces and control over their own data. The analyst now sees Government sales exceeding $8 billion by 2030, with a 2025–30 CAGR rising to 30% from 27%.
Given all the above, Perez Mora assigns PLTR shares a Buy rating, while raising her price objective from $180 to $215, implying the stock will gain another 20% in the months ahead. (To watch Perez Mora’s track record, click here)
That bullish stance, however, isn’t widely shared. Most of Perez Mora’s colleagues are more cautious, and the consensus view leans toward the sidelines; based on a mix of 12 Holds, 6 Buys and 2 Sells, the stock claims a Hold (i.e., Neutral) consensus rating. The average price target stands at $160.11, suggesting the stock is overvalued by ~11%. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.