Palantir Technologies (PLTR) stock won a new Street-High price target from Bank of America Securities analyst Mariana Perez Mora. On September 10, the five-star analyst lifted the price target on PLTR to $50 from $30, while reiterating a Buy rating. The new price target of $50 implies an attractive 43.8% upside potential from current levels.
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Analyst Bullish on Palantir’s Future Growth
The analyst is highly impressed with the news of Palantir’s inclusion in the S&P 500 index, effective September 23, and called it a “watershed moment.” Perez urged institutional investors to reconsider Palantir’s long-term potential, contending that they are undervaluing its significant future growth trajectory. Palantir is a key player in the AI market, especially considering its sound customer base that includes both government and large-scale commercial clients.
Perez is particularly encouraged by Palantir’s “Ontology” platform that enables customers to harness and automate big data for improved decision making. Furthermore, the analyst believes in Palantir’s ability to safely implement machine learning, AI (artificial intelligence), and big data science possibilities such as quantum computing.
The analyst also pointed out Palantir’s unique sales model, under which its engineers work closely with customers to understand and design customized solutions, thus promoting long-term relationships. This model also allows Palantir to command higher pricing. She believes that Palantir’s operating margin of 35% reflects the success of its sales model.
Perez Mora believes that all these differentiating factors contribute to Palantir’s growing customer base, with a solid potential for outsized growth in the years to come.
PLTR Insiders Are Cashing in on the Stock Price Surge
Interestingly, Palantir’s co-founder and Chairman Peter Thiel has locked in a pre-arranged plan (Rule 10b5-1) to sell up to $1 billion worth of PLTR stock. Thiel plans to sell 28,590,737 shares by December 31, 2025 through his investment company Rivendell 7 LLC.
It would be intriguing to see the timing of the planned stock sale, as PLTR shares keep zooming higher each trading day and Thiel has not sold any shares yet. Year-to-date, PLTR shares have rallied 102.5%. Looking at the overall insider trading picture, TipRanks’ Insider Trading Activity tool shows that corporate insiders are already cashing in on Palantir’s stock price surge. PLTR stock has a Negative Insider Confidence Signal, as corporate insiders have sold shares worth $11.1 million in the last three months
Is Palantir a Buy, Hold, or Sell?
Not all analysts share the same enthusiasm for PLTR stock as Perez. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, five Holds, and six Sell ratings. The average Palantir price target of $27.08 implies 22.1% downside potential from current levels.
