Palantir Technologies (PLTR) stock has rallied more than 134% year-to-date (as of Monday’s closing), driven by the data analytics company’s solid financials. The company is seeing strong demand for its artificial intelligence (AI)-powered offerings across its government and commercial businesses. While many analysts see a downside risk in PLTR stock due to valuation concerns, Piper Sandler analyst Clarke Jeffries reiterated a Buy rating and raised his price target from $182 to $201, reflecting continued upside potential in the AI stock.
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Piper Sandler Is Optimistic About Continued Growth in Palantir Stock
Jeffries acknowledged that Palantir stock has a high valuation, leaving little room for error, particularly if any signs of moderating growth arise. That said, the analyst contends that the company has yet to reach its “peak growth.” Consequently, Jeffries doesn’t see a “catalyst to halt current momentum.”
Interestingly, Jeffries cited several factors for his bullish stance. He noted that there is tremendous visibility into future revenue, with more than $7 billion in defined contract value and an estimated $4 billion in Indefinite Delivery, Indefinite Quantity (IDIQ) contract value. He also highlighted accelerating triple-digit growth in year-to-date bookings in Palantir’s Commercial business.
Finally, Jeffries emphasized Palantir’s “unparalleled wallet share opportunity” across $1 trillion of U.S. defense spending, which could help the company multiply its current Government business by two to three times while still remaining ten times smaller than major defense primes (prime contractors).
Is PLTR a Good Stock to Buy?
Currently, Wall Street has a Hold consensus rating on Palantir Technologies stock based on 13 Holds, four Buys, and two Sell recommendations. The average PLTR stock price target of $156.53 indicates a possible downside of about 12% from current levels.
