Phillip Securities analyst Alif Fahmi initiated coverage on Palantir Technologies (PLTR) with a Buy rating and set a $208 price target, implying a 25% upside potential from current levels. The analyst said Palantir is entering a phase of faster growth, led by strong U.S. demand and rising use of its AI platform across businesses. He also expects profits to jump in the year ahead.
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Phillip Securities Sees Faster Growth Ahead
Fahmi expects Palantir’s revenue to rise 47% year over year to $4.2 billion in FY25, with growth led by the commercial business. He sees commercial revenue climbing 51%, faster than 43% growth in government revenue, as more companies adopt Palantir’s AI tools and the firm expands beyond defense into other sectors.
Profit growth is also set to improve. Fahmi expects net profit to nearly double in FY25, helped by better scale and a shift toward higher-value contracts.
The analyst said the U.S. remains Palantir’s main growth driver. The region accounts for about 66% of total revenue, and Fahmi expects U.S. sales to grow 66% year over year in FY25.
Government demand is rising due to global tensions and higher U.S. intelligence spending. At the same time, the commercial business is gaining pace. U.S. commercial deal sizes roughly doubled in Q3 FY25, supported by strong uptake of Palantir’s AI platform.
On valuation, Fahmi noted that while the stock trades at a high level, he believes strong growth and improving fundamentals leave room for further upside from here.
What Is the Price Target for PLTR Stock?
On TipRanks, PLTR stock has a Hold consensus rating based on six Buys, 10 Holds, and two Sells assigned in the last three months. At $193.76, Palantir’s average stock price target implies an upside of 17.20% from the current level.
