Palantir Technologies Inc. (NASDAQ:PLTR) is one of the AI Stocks Analysts Are Watching Closely. On January 6, Truist initiated the stock as “Buy” with a price target of $223. Analyst calls Palantir a “best in-class asset” with accelerating fundamentals.
The firm acknowledged how Palantir already commands a significant valuation premium, but still considers it a buy due to its major opportunity to continue driving GenAI adoption for government and enterprises.
Palantir has witnessed material improvement in its momentum, primarily by the release of AIP, its Artificial Intelligence Platform (AIP).
” PLTR has seen material improvement in its momentum driven by the release of AIP, with top-line growth accelerating to 63% y/y from 13% y/y as of 2Q23 – with a larger portion of this growth flowing down to op. margins, reaching 50%+ margins.”
The company reported a revenue increase of 50% year over year for the past two quarters from U.S. government contracts, while commercial growth surged 73%.
“After reaching a Rule of 114 profile last quarter and guiding for Rule of 113 in 4Q25, we see potential for a sustainable Rule of 80+ profile, balanced between 50%+ operating margins and continued strong top-line growth,” Ramnani noted. “We compared Palantir against 110 other software companies and found it’s expected to generate the highest Rule of 40 over the next 3 years – an unparalleled financial profile, in our view.”
Overall, the firm believes that Palantir is a best in-class asset. While much of its revenue is currently coming from its US business, it is also poised to benefit from international pathways.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
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