Can Palantir Stock Hit $170 in 2025?

Yahoo

4 days ago

Palantir Technologies (PLTR) began as a counterterrorism-focused startup, fueled by post-9/11 urgency and backed early by the CIA's venture arm, In-Q-Tel. It has now evolved into a front runner in the artificial intelligence (AI) infrastructure race. Its AI Platform (AIP) is gaining serious traction, weaving into operations across defense, healthcare, and finance. The company's shift from a niche intelligence partner to an enterprise AI backbone is showing up in contracts, revenue, and market momentum.
PLTR stock's recent surge past $160 has turned heads, fueled by back-to-back federal deals, sharp commercial adoption, and the Street's bullish price targets. In high-momentum tech plays, analyst commentary can often become a catalyst in itself.
More News from Barchart
Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold
As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here?
Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here?
Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!
Palantir was previously called the 'Messi of AI' by Wedbush analyst Dan Ives, one of Wall Street's loudest tech bulls. Now, Piper Sandler is joining the chorus, calling Palantir an 'AI All-Star' and setting a $170 target, banking on its rare mix of growth and margins to capture massive TAM.
But with rich valuation, extreme volatility baked in, and sky-high expectations, can Palantir really hold its line and hit $170 in 2025?
About Palantir Stock
Founded in 2003, Palantir has grown from a counterterrorism startup into a major force in AI and data analytics. Headquartered in Denver, Colorado, it built platforms like Gotham, Foundry, Apollo, and now AIP, each designed to transform data into strategic action.
The company's deepening role in U.S. defense shows its expanding influence. Today, Palantir powers decisions across governments and industries, redefining how intelligence, security, and enterprise operations are driven by data. With a $372 billion market capitalization, PLTR has officially entered large-cap heavyweight territory.
Palantir's rally has been nothing short of explosive. The stock is up 106% year-to-date (YTD), hitting an all-time high of $160.39 on July 25, making it the top-performing name of the S&P 500 Index ($SPX) in 2025. Its long-term returns are jaw-dropping, with shares up 477% in one year, 777% over two, and a staggering 1,264% across three.
But here's where it gets tricky. With resistance looming at $162 and overbought signals flashing — like the 14-day RSI nearing 70 — the road to Piper Sandler's $170 target may not be smooth. Momentum is hot, but volatility is not far behind.
Palantir's ascent may scream AI dominance, but its valuation paints a riskier picture. Trading at over 400 times forward earnings and 130 times sales, PLTR's valuation towers above even top-tier tech players. While it is branching into the commercial world, Palantir's heart still beats in Washington contracts. For all its potential, the stock's price tag reflects a future not yet fully earned. Reality may demand patience.
Palantir's Q1 Results Exceed Projections
Palantir delivered an impressive first-quarter 2025 earnings report on May 5, pulling in $884 million in revenue, a 39% year-over-year (YOY) jump. But it was the U.S. market that dominated the stage, with stateside revenue soaring 55% to $628 million, powered by 71% growth in the commercial segment and a solid 45% uptick in government business.
The profit line did not disappoint either. Adjusted net income surged nearly 70% to $334.4 million, while EPS amounted to $0.13, crushing expectations with a 62.5% YOY leap. Free cash flow doubled to $370.4 million, with a 42% margin — a clear show of Palantir's operational discipline and financial firepower.
Riding this momentum, management didn't hold back and raised its full-year revenue guidance, now projecting between $3.89 billion and $3.902 billion. U.S. commercial growth alone is now projected to increase by at least 68%, while adjusted operating income is expected to be between $1.71 billion and $1.72 billion.
Palantir is all set to release its fiscal Q2 earnings report on Aug. 4 after the market closes. Management projects revenue for the quarter to be between $934 million and $938 million, while adjusted income from operations is estimated to be between $401 million and $405 million.
Meanwhile, analysts monitoring Palantir expect the company's Q2 EPS to climb 167% YOY to $0.08. Looking further ahead to fiscal 2025, the bottom line is estimated to be around $0.37 per share, up 362% annually, then rise by another 19% to $0.44 per share in fiscal 2026.
What Do Analysts Expect for Palantir Stock?
Wall Street's latest bullish call on Palantir comes from Piper Sandler, and it's turning heads. The brokerage firm initiated coverage on PLTR stock with an 'Overweight' rating and a $170 price target.
The firm views Palantir as a 'one-of-a-kind growth and margin model' that, if proven durable, could hit a $24 billion run rate by 2032 through share gains across two $1 trillion-plus total addressable markets. The analyst calls the company a clear-cut AI secular winner, powering critical infrastructure across both government and commercial sectors.
But the optimism comes with caution. Piper Sandler acknowledges Palantir's history of sharp drawdowns, underscoring the stock's volatility. Despite the bullish thesis, the analyst warns that the valuation is rich and not suited for the faint-hearted. Piper Sandler recommends a 'buy on a drawdown' strategy, urging patience and disciplined exposure as Palantir's growth story unfolds.
Wall Street's take on PLTR stock feels more like a cautious nod than a full-on high five. The stock holds a consensus 'Hold" rating — steady, but far from a Street-wide vote of full confidence. Out of 21 analysts, only four are all-in with a 'Strong Buy" rating, while the majority of 13 analysts sit on the fence with a 'Hold." One analyst leans slightly bearish with a 'Moderate Sell,' while three others do not buy the hype at all, flat-out issuing a 'Strong Sell.'
While PLTR is trading at a premium to its average analyst price target of $110.72, Piper Sandler's Street-high target of $170 suggests that shares can still rise by as much as 9% from current levels.
Final Thoughts on Palantir
Palantir's growth engine has been fueled by a commercial push powered by AIP and its unique boot camp model, which lowers the barrier to adoption. Meanwhile, the $795 million U.S. Army contract and ongoing involvement in projects like the 'Golden Dome' missile defense system keep its government ties rock solid. On the commercial front, new partnerships, like with The Nuclear Company and Tomorrow.io, signal wider adoption.
Still, with sky-high valuations and lingering government dependence, Palantir's path forward is not without friction. However, if it can sustain its dual-pronged growth and prove AIP's long-term value, the company might just justify the hype, though likely not without some bumps along the way.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com