Palantir Stock Deserves Valuation Premium: Analyst Says Growth + Margin Equals 'Category Of One'

Palantir Technologies (NASDAQ:PLTR) analysts highlight the company's accelerating growth after it reported second-quarter financial results and provided guidance ahead of estimates.

The Palantir Analysts: Piper Sandler analyst Brent Bracelin maintained an Overweight rating on Palantir and raised the price target from $170 to $182.

Bank of America analyst Mariana Perez Mora reiterated a Buy rating and raised the price target from $150 to $180.

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Piper Sandler on PLTR: Strong demand across government and commercial segments is showing the AI platform potential for Palantir, Bracelin said in a new investor note. He said Palantir's second-quarter revenue beat was the largest in dollars ever, marking the eighth consecutive quarter of top-line growth acceleration.

"The 10-year $10B Army Deal strengthens the case for further government share gains within the large $1T+ Defense TAM while 93% y/y growth in U.S. commercial reinforces an untapped AI platform opportunity for large enterprise customers," Bracelin said.

Strong demand from both the government and commercial segments supports an "intermediate-term bull-case scenario" for Palantir stock, the analyst said.

"While PLTR carries a rich valuation premium and remains a high-risk investment, the one-of-a-kind growth+margin model puts it into a unique category of one that warrant a premium, in our view."

Bracelin noted that Palantir is growing revenue and market share within two different $1 trillion+ TAM opportunities.

Bank of America on PLTR: Stronger-than-expected growth and profitability highlight a strong second quarter, said Mora in a new investor note.

"We expect growth to continue as PLTR remains the best in class for deploying and operationalizing AI into enterprises," Mora said.

Palantir is approaching its own "singularity" moment with its first quarter of more than $1 billion in revenue, she pointed out.

"We see the US customer count growth of 64% Y/Y, with only about 10% increase in headcount, as soothing concerns that growth is capped by the number of forward-deployed engineers PLTR can maintain."

Mora said they expect Palantir's new customer growth to continue with the company being the best in class for deploying AI into enterprises.

She also highlighted that Palantir aligns with all three key pillars of the recent "Winning the Race" AI plan from the Trump administration, noting that it could benefit from an acceleration of AI adoption in the government.

"The number of US companies mentioning PLTR on their earnings calls more than tripled Y/Y in 1Q25, with PLTR gaining ground in multiple new sectors."

Palantir mentions continue to be strong, Mora said, in the second quarter earnings cycle, which highlights the company's notable brand.

PLTR Price Action: Palantir stock rose 7.1% to $172.05 on Tuesday, within a 52-week trading range of $25.57 to $176.33. Palantir stock is up 128.9% year-to-date in 2025, hitting new 52-week highs Tuesday morning.

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