Top BofA Analyst Boosts Palantir Stock Prediction to Industry-Leading $215
Palantir Technologies (PLTR) has become one of the leading players in the AI-driven market. The Denver-based company’s market capitalization is nearly $440 billion and it has surged 145% year to date, significantly outpacing the S&P 500, which earned roughly 15% in the same timeframe.
Market Performance and Growth
Over the past year, Palantir shares have returned an impressive 305%, reaching a 52-week high of $190 in August. This growth has been fueled by increased adoption of its AI-driven data solutions, expanding commercial partnerships, and substantial government contracts.
BofA Boosts Palantir Stock Price Prediction
Bank of America Securities (BofA) has raised its target price for Palantir to $215 from $180, maintaining a “Buy” rating. Analyst Mariana Perez Mora emphasized the company’s expanding list of government and enterprise contracts. She noted the rising utilization of Agentic AI in Palantir’s operations.
- Strong government sales could exceed $8 billion by 2030.
- Long-term revenue growth is projected at a 30% annual rate.
Mora also highlighted the success of the Maven Smart System, selected by NATO earlier this year. The increasing use of Agentic AI is helping Palantir enhance its platform capabilities, which aligns with its AI leadership.
Record Financial Results
In August, Palantir reported its most impressive quarter yet, achieving a revenue of $1.004 billion, marking a 48% increase year over year. This was the company’s first quarter to surpass the billion-dollar mark.
- U.S. revenue grew by 68%.
- Commercial sales in the U.S. rose by 93%.
- Adjusted operating income reached $464 million with a 46% margin.
- Adjusted earnings per share were $0.16.
The company’s Rule of 40 score, a metric evaluating growth against profitability, hit 94%, reflecting a strong balance between expansion and operational efficiency. In this quarter, Palantir closed 157 deals worth over $1 million, including 66 exceeding $5 million and 42 crossing $10 million.
Future Revenue Projections
For Fiscal 2025, Palantir forecasts total revenue between $4.14 billion and $4.15 billion, an upward revision from earlier estimates. The company anticipates U.S. commercial revenue to exceed $1.3 billion, projecting an 85% growth rate in this segment.
Analyst Ratings and Market Sentiment
Despite BofA’s optimistic outlook, Palantir’s elevated valuation has led to mixed opinions among analysts. HSBC has raised its target for the stock to $181 from $111 but maintains a “Hold” rating due to execution risks and valuation concerns.
Overall, Palantir’s consensus rating is “Hold.” Among the 19 analysts evaluating the company, four recommend a Buy, 13 suggest a Hold, and two indicate a Sell. The average 12-month price target is $157.72, indicating a potential downside of 10.8% from current levels.
