This Is Why Wedbush Sees Palantir (PLTR) Hitting $140 per Share

Earlier today, investment firm Wedbush kept its Outperform rating and $140 price target on Palantir Technologies (PLTR) after the AI company received a $795 million contract extension from the U.S. Army for its Maven Smart System software. This follows a previous $480 million contract in May 2024 to bring the total value to around $1.3 billion, which is Palantir’s first-ever billion-dollar deal. Analysts led by four-star rated Daniel Ives said this shows that Palantir’s importance is growing in the U.S. government, especially in defense, where its AI software helps with data fusion and target identification.

As a result, Ives and his team believe that Palantir will continue to win contracts as the U.S. and allied governments ramp up their AI spending. The analysts also mentioned a new project announced by President Trump called the “Golden Dome,” which is a $175 billion missile defense system modeled after Israel’s Iron Dome. The plan, led by U.S. Space Force General Michael Guetlein, includes $25 billion already set aside for 2026, and Wedbush expects Palantir to be one of the main companies involved.

In addition, Palantir is winning new government deals that don’t involve its Maven software. In fact, the company recently signed a $30 million contract with U.S. Immigration and Customs Enforcement to build a surveillance system called “ImmigrationOS.” Therefore, Wedbush believes that Palantir’s AI-driven approach fits perfectly with the government’s goal of doing more with fewer resources. Even in a tighter budget environment, the analysts say that these defense-related contracts are high priority and unlikely to be cut.

Is PLTR Stock a Buy?

Overall, analysts have a Hold consensus rating on PLTR stock based on three Buys, 11 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $100.13 per share implies 18.2% downside risk.

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