Palantir Stock Lands a New Street-High Price Target

AI stock Palantir (NASDAQ:PLTR) presents a bit of a conundrum for investors right now. On the one hand, the company has been on a steady upward trajectory, delivering strong earnings reports and gaining real traction with its products – particularly its AI offering, AIP (Artificial Intelligence Platform). On the other hand, the share gains that followed its success have left the stock with an extremely lofty valuation.

This point was brought up by Loop Capital analyst Mark Schappel, who notes that the stock is now trading at a sky-high 48x EV/2027E Revenue – the richest multiple in the entire enterprise software space. In short, “PLTR is not for the faint of heart.”

However, Schappel says the key to investing in PLTR is to “buy into the big picture.” First, there’s the massive AI market opportunity still in its early innings. Second, the breadth of AI applications has the potential to reshape how entire industries operate – meaning Palantir’s growth potential isn’t capped by market size. And third, Palantir is uniquely positioned to lead this shift.

“For those wanting exposure to this dynamic, we think it’s hard to put a price on the opportunity,” Schappel adds.

His comments followed an investor meeting with Palantir CFO David Glazer – a meeting that left the analyst with “increased conviction in the story.” It opened with a demo of AIP, Palantir’s platform that fuses large language models, enterprise data, and internal business logic to power real-world operations. The presentation showcased AIP’s ability to manage complex data, integrate LLMs, and automate workflows – reinforcing the view that Palantir isn’t just another data infrastructure provider.

Schappel emphasized that Palantir goes beyond traditional analytics tools. “Instead,” he explained, “PLTR is a platform that combines data integration with operational business logic, where it orchestrates business workflows for AI-driven operational decision making.”

As for competition – the most common question from investors – Schappel noted that Palantir doesn’t view data-centric firms like Snowflake, Databricks, or cloud providers as direct threats. Those companies largely handle data storage and historical analysis, whereas Palantir aims to be an enterprise operating system that actively powers decision-making across dynamic environments.

Summing up, Schappel believes Palantir is an “early software leader in enterprise AI,” positioned “at a tipping point as small-scale pilots move into production and as AI use cases grow exponentially across all industries.”

Backing that view, he lifts his price target from $130 to a Street-high of $155, implying a potential upside of 14.5%. Schappel keeps his Buy rating firmly in place. (To watch Schappel’s track record, click here)

Most analysts, though, have a more skeptical bent; based on a mix of 11 Holds, 4 Sells and 3 Buys, the stock claims a Hold consensus rating. The average target stands at $104, 23% below the current share price. (See PLTR stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.