Analyst on Wall Street boosts Palantir's projected stock value, exercising caution in the process
In the fast-paced world of tech stocks, Palantir Technologies (PLTR) has been a standout performer in 2025. As of press time, the company is trading at $148.58, down 0.38%, reflecting a year-to-date increase of nearly 97%. However, the market's response to Palantir's exceptional gains has been somewhat cautious.
Wall Street analysts, on average, have a 12-month price target of $106.71 for Palantir, which is approximately 28% below current levels. According to TipRanks data, 3 analysts rate Palantir a 'Buy', 9 recommend 'Hold', and 4 suggest 'Sell', resulting in a consensus 'Hold' rating.
The caution stems from Palantir's lofty valuation multiples. The stock trades at a forward P/E ratio of around 255 and a price-to-sales ratio of approximately 90, indicating that the market has priced in extremely high growth expectations. Analysts caution that this leaves little room for error in hitting growth targets.
Despite these concerns, Palantir's operational growth is impressive. The company projects revenue of around $3.89 billion to $3.9 billion for 2025, a 35% increase from the previous year. Commercial revenue is expected to increase even more significantly by 68%, reflecting growing enterprise adoption of Palantir’s AI software.
Palantir's momentum is driven by AI adoption and important contracts, such as a $30 million deal with ICE and partnerships bringing AI to financial services. CEO Alex Karp emphasizes Palantir as a crucial operating system for enterprises in the AI era. These developments support long-term growth potential.
Analysts expect revenue growth to moderate but continue rising from $3.9 billion in 2025 to nearly $12 billion by 2030, with earnings per share improving from $0.58 to $1.44 during that period.
Wedbush Securities, for example, cites strong momentum from AI initiatives and federal spending in the U.S. and Europe for their bullish view, raising their price target to $160 and maintaining an Outperform rating. Mizuho Securities analyst Gregg Moskowitz, on the other hand, maintains a neutral view on Palantir but acknowledges its uniqueness. He upgraded Palantir to 'Neutral' from 'Underperform' and raised his price target modestly from $116 to $135.
Moskowitz warns that Palantir's valuation is high, making it vulnerable to a sharp pullback in the coming quarters. However, he also praises Palantir's unique position to benefit from trends in AI, government digital transformation, and industrial modernization.
In conclusion, Palantir is experiencing strong operational growth and leadership in AI-powered software, leading to substantial stock price appreciation in 2025. However, analysts remain cautious on valuation, with many viewing current prices as fully priced or even slightly overextended, resulting in mostly "Hold" or "Neutral" ratings and price targets below current market value. The stock’s future performance will hinge on Palantir’s ability to sustain high growth and operational execution in the competitive AI landscape.
Technology drives Palantir's momentum, with AI adoption and significant contracts fueling the company's growth. finance-wise, despite the impressive growth, analysts' average 12-month price target for Palantir is $106.71, which is approximately 28% below current levels.
