Piper Sandler late Thursday initiated coverage of Palantir Technologies with an overweight rating, shrugging off its lofty valuation. Palantir stock rose on Friday, hitting a new all-time high in intraday trading.
Palantir stock has climbed about 110% in 2025 ahead of its second quarter earnings report on Aug. 4.
On the stock market today, Palantir stock hit a new high of 160.39 in morning trading. PLTR stock closed up 2.5% to 158.80.
Piper Sandler analyst Brent Bracelin set a price target of 170 on Palantir stock, which he says offers "one of a kind growth."
"We have monitored Palantir for five-plus years from a coveted late-stage private that completed a direct listing in September 2020 through the trough of disillusionment in late 2022 as the stock plummeted to $6 lows into the recent 'rise of the phoenix' moment where PLTR has been crowned an AI All-Star on accelerating growth," Bracelin said in a report.
He added: "No doubt, Palantir carries a rich valuation premium and remains a high-risk investment, but it also has a one-of-a-kind growth plus margin model that if proven durable could grow into a $24 billion run-rate by 3032 via share gains across two $1-plus trillion total addressable markets. We see Palantir as an AI secular winner and initiate at overweight."
The maker of data analytics software holds a premium valuation. Palantir stock has gained amid views that the company seems poised to win more U.S. government business under the Trump administration. Also, retail investor enthusiasm for generative artificial intelligence plays has boosted Palantir stock, although commercial-related revenue has yet to ramp up for the company.
In the Q2 Palantir earnings report, Wall Street analysts project 54% profit growth to 54 cents with revenue rising 38% to $937.5 million.
Palantir Stock Technical Ratings
The Relative Strength Rating of PLTR stock stands at 99 out of a best-possible 99.
Palantir stock holds an Accumulation/Distribution Rating of B. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock holds a 21-day ATR of 3.83%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs of up to 8% in the current market. However, Palantir is extended beyond a buy point and needs to form a new base to be actionable.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing.
