Is Palantir Stock The 'Most Underrated AI-Exposed Play In The Market'?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
0mins
Should l Buy PLTR?
Source: Benzinga
- Joe Terranova's View on Palantir:
- Joe Terranova believes Palantir Technologies Inc. is a strong play for the AI boom, considering it undervalued and underrated in the market.
- He personally owns Palantir stock and includes it in his momentum fund.
- Terranova highlights Palantir's significant exposure to government contracts and growing commercial business driven by AI.
- BofA Securities also added Palantir to its top 10 best U.S. ideas list, expecting further share price rally as the AI story shifts to software.
- The upcoming earnings season, with expectations high for tech stocks, will be crucial for Palantir's trajectory.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 146.280
Low
50.00
Averages
192.88
High
255.00
Current: 146.280
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir's AI Platform Drives Earnings Growth
- Earnings Growth Forecast: Analysts project Palantir's non-GAAP earnings per share to rise from $1.32 in fiscal 2026 to approximately $6.25 by fiscal 2030, indicating strong growth potential in the AI sector and reinforcing its market position.
- Valuation Normalization: Although Palantir's current forward P/E ratio stands at 77.3x, analysts expect it to normalize to an average of 54.4x over the next five years, reflecting growing market confidence in its long-term profitability.
- Significant Price Potential: Should the earnings forecasts hold, Palantir's stock could reach around $340 per share in the next five years, implying more than a 2.3 times increase from its recent closing price, showcasing investor optimism about its future growth.
- Regular Investment Benefits: Investing $100 monthly over five years totals $6,000, and with an assumed annual return of 18.9%, the total portfolio value could reach approximately $10,389, illustrating the compounding effect of consistent investing.
See More
Palantir Secures Military Funding with New Designation
- Government Business Stability: Palantir's government segment saw a 53% revenue growth in 2025, with $2.4 billion coming from government clients, indicating strong performance in defense and potential for future contracts.
- Maven System Formalization: The Pentagon's designation of Palantir's Maven Smart System as an official program of record means the military is integrating it into ongoing operations, providing long-term contract security for Palantir.
- Contract Value Enhancement: The U.S. Army awarded Palantir an enterprise agreement worth up to $10 billion last year, and with Maven's formal designation, Palantir is more likely to realize the high end of that contract's value, strengthening its competitive position for future contracts.
- Market Valuation Volatility: Despite a 30% drop in Palantir's stock amid recent market volatility, its price-to-earnings ratio remains at 82 times, reflecting investor confidence in future growth while also indicating potential market risks.
See More
Benchmark Initiates Coverage on Palantir with Hold Rating
- Coverage Initiation: Investment firm Benchmark has initiated coverage on Palantir with a Hold rating and a $150 price target, indicating that the market has priced the company for perfection, leaving little room for error.
- Revenue Growth Challenges: Analysts emphasize that Palantir must achieve annual revenue growth of 60-70% to avoid potential market drawdowns, highlighting the pressure on the company given its high valuation.
- Weak International Demand: The company's international commercial revenue grew a mere 2.5% year-over-year to $608 million in 2025, suggesting that even allied Western nations are pushing back against demand, which could hinder future growth prospects.
- Contract Value Insights: Palantir secured $1.3 billion in total contract value (TCV) bookings, primarily driven by long-term renewals with existing customers, demonstrating the company's ability to maintain client relationships but lacking in new customer acquisition.
See More
Palantir's New Contract Could Catalyze Long-Term Growth
- Contract Impact: Palantir's latest contract with the Navy may represent a strategic move that goes beyond another AI narrative, aiming to deepen its market moat and enhance long-term growth potential.
- Market Rebound: Despite recent stock price pullbacks, analysts suggest this may mask a larger opportunity for patient investors, indicating the company's sustained influence in the defense sector.
- Investor Confidence: The signing of this contract could bolster investor confidence in Palantir's future development, particularly in government and military applications, further solidifying its market position.
- Strategic Significance: By collaborating with the Navy, Palantir not only showcases its technological capabilities but may also pave the way for future contracts and partnerships, driving the company's long-term success in a competitive market.
See More
Palantir Achieves New Milestone with U.S. Government Partnership
- Government Revenue Growth: Palantir's government segment generated $2.4 billion in 2025, accounting for 53.6% of total revenue, highlighting its strong market position in defense.
- Maven System Formalization: The Pentagon's designation of Palantir's Maven Smart System as an official program of record indicates long-term integration into military operations, enhancing the likelihood of realizing high contract values.
- Contract Potential Enhancement: The U.S. Army awarded Palantir an enterprise agreement worth up to $10 billion, and Maven's new status increases the chances of achieving the high end of that contract, strengthening competitive positioning for future contracts.
- Commercial Growth Momentum: Palantir's commercial business surged after the launch of its AIP platform, with projected revenue growth of 62% this year and 30% next year, demonstrating robust growth potential in the AI sector.
See More
Latest Wall Street Ratings Overview
- Boeing Rating: Wells Fargo initiates coverage of Boeing with a Buy rating, forecasting a significant recovery in free cash flow as production normalizes, setting a price target of $250 based on a 20x FCF multiple on its 2028 forecast, indicating strong confidence in future growth.
- Disney Upgrade: Raymond James upgrades Disney from Market Perform to Outperform with a price target of $115, viewing the current macro backdrop and international visitation challenges as an attractive investment opportunity, reflecting optimism about its valuation.
- Microsoft Buy Rating: Benchmark initiates Microsoft with a Buy rating and a price target of $450, describing it as a juggernaut in artificial intelligence, leveraging its comprehensive portfolio of digital applications and cloud services to drive enterprise and consumer transformation, showcasing its strong market position.
- Algonquin Power Rating: Barclays initiates coverage of Algonquin Power & Utilities with an Overweight rating, citing the company's undervaluation and strong turnaround potential, indicating market confidence in its future performance.
See More
Palantir's AI Platform Drives Earnings Growth
- Earnings Growth Forecast: Analysts project Palantir's non-GAAP earnings per share to rise from $1.32 in fiscal 2026 to approximately $6.25 by fiscal 2030, indicating strong growth potential in the AI sector and reinforcing its market position.
- Valuation Normalization: Although Palantir's current forward P/E ratio stands at 77.3x, analysts expect it to normalize to an average of 54.4x over the next five years, reflecting growing market confidence in its long-term profitability.
- Significant Price Potential: Should the earnings forecasts hold, Palantir's stock could reach around $340 per share in the next five years, implying more than a 2.3 times increase from its recent closing price, showcasing investor optimism about its future growth.
- Regular Investment Benefits: Investing $100 monthly over five years totals $6,000, and with an assumed annual return of 18.9%, the total portfolio value could reach approximately $10,389, illustrating the compounding effect of consistent investing.
See More
Palantir Secures Military Funding with New Designation
- Government Business Stability: Palantir's government segment saw a 53% revenue growth in 2025, with $2.4 billion coming from government clients, indicating strong performance in defense and potential for future contracts.
- Maven System Formalization: The Pentagon's designation of Palantir's Maven Smart System as an official program of record means the military is integrating it into ongoing operations, providing long-term contract security for Palantir.
- Contract Value Enhancement: The U.S. Army awarded Palantir an enterprise agreement worth up to $10 billion last year, and with Maven's formal designation, Palantir is more likely to realize the high end of that contract's value, strengthening its competitive position for future contracts.
- Market Valuation Volatility: Despite a 30% drop in Palantir's stock amid recent market volatility, its price-to-earnings ratio remains at 82 times, reflecting investor confidence in future growth while also indicating potential market risks.
See More
Benchmark Initiates Coverage on Palantir with Hold Rating
- Coverage Initiation: Investment firm Benchmark has initiated coverage on Palantir with a Hold rating and a $150 price target, indicating that the market has priced the company for perfection, leaving little room for error.
- Revenue Growth Challenges: Analysts emphasize that Palantir must achieve annual revenue growth of 60-70% to avoid potential market drawdowns, highlighting the pressure on the company given its high valuation.
- Weak International Demand: The company's international commercial revenue grew a mere 2.5% year-over-year to $608 million in 2025, suggesting that even allied Western nations are pushing back against demand, which could hinder future growth prospects.
- Contract Value Insights: Palantir secured $1.3 billion in total contract value (TCV) bookings, primarily driven by long-term renewals with existing customers, demonstrating the company's ability to maintain client relationships but lacking in new customer acquisition.
See More
Palantir's New Contract Could Catalyze Long-Term Growth
- Contract Impact: Palantir's latest contract with the Navy may represent a strategic move that goes beyond another AI narrative, aiming to deepen its market moat and enhance long-term growth potential.
- Market Rebound: Despite recent stock price pullbacks, analysts suggest this may mask a larger opportunity for patient investors, indicating the company's sustained influence in the defense sector.
- Investor Confidence: The signing of this contract could bolster investor confidence in Palantir's future development, particularly in government and military applications, further solidifying its market position.
- Strategic Significance: By collaborating with the Navy, Palantir not only showcases its technological capabilities but may also pave the way for future contracts and partnerships, driving the company's long-term success in a competitive market.
See More
Palantir Achieves New Milestone with U.S. Government Partnership
- Government Revenue Growth: Palantir's government segment generated $2.4 billion in 2025, accounting for 53.6% of total revenue, highlighting its strong market position in defense.
- Maven System Formalization: The Pentagon's designation of Palantir's Maven Smart System as an official program of record indicates long-term integration into military operations, enhancing the likelihood of realizing high contract values.
- Contract Potential Enhancement: The U.S. Army awarded Palantir an enterprise agreement worth up to $10 billion, and Maven's new status increases the chances of achieving the high end of that contract, strengthening competitive positioning for future contracts.
- Commercial Growth Momentum: Palantir's commercial business surged after the launch of its AIP platform, with projected revenue growth of 62% this year and 30% next year, demonstrating robust growth potential in the AI sector.
See More
Latest Wall Street Ratings Overview
- Boeing Rating: Wells Fargo initiates coverage of Boeing with a Buy rating, forecasting a significant recovery in free cash flow as production normalizes, setting a price target of $250 based on a 20x FCF multiple on its 2028 forecast, indicating strong confidence in future growth.
- Disney Upgrade: Raymond James upgrades Disney from Market Perform to Outperform with a price target of $115, viewing the current macro backdrop and international visitation challenges as an attractive investment opportunity, reflecting optimism about its valuation.
- Microsoft Buy Rating: Benchmark initiates Microsoft with a Buy rating and a price target of $450, describing it as a juggernaut in artificial intelligence, leveraging its comprehensive portfolio of digital applications and cloud services to drive enterprise and consumer transformation, showcasing its strong market position.
- Algonquin Power Rating: Barclays initiates coverage of Algonquin Power & Utilities with an Overweight rating, citing the company's undervaluation and strong turnaround potential, indicating market confidence in its future performance.
See More
