Palantir Technologies (PLTR) had an incredible 2024. This AI-driven software giant showed remarkable growth, expanded its presence in the commercial sector, and strengthened its dominance in government contracts. Despite these successes, Wall Street remained cautious. Analysts often pointed out the stock’s high valuation, calling it risky. But Palantir kept pushing forward. On February 4, the company once again proved the doubters wrong with an outstanding Q4 2024 earnings report, solidifying its role as a leader in the AI industry. However, the company is still facing doubts from Wall Street analysts regarding its steep valuation, drawing mixed reactions. Nevertheless, one 5-star analyst has complete faith in its prospects and just raised its price target to $125 with a Buy rating.
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One Analyst Is a Firm Believer
Even with its strong performance, Palantir is still in a tricky spot on Wall Street, with a consensus rating of “Hold.” However, one five-star analyst has a different view. Mariana Perez Mora of BofA Securities is sticking to her optimistic outlook, maintaining a “Buy” rating and raising her price target to an impressive $125 per share. For Mora, Palantir isn’t just another AI company—it’s a game-changer set for long-term success.
Mora’s confidence in Palantir comes from its fast-growing revenue and leadership in the AI field. She predicts a 27% year-over-year revenue increase for 2025, much higher than Wall Street’s expectations. She also expects even stronger growth in 2026 and 2027, driven by rising demand for Palantir’s AI-powered platforms. Mora sees Palantir’s bold expansion in the commercial sector as a key factor for ongoing success, positioning the company as a future tech giant like Oracle or Salesforce.
Not Everyone Shares Mora’s Enthusiasm
Michael Latimore, also a five-star analyst according to Tipranks’ ratings, of Northland Securities advises caution, sticking with a “Hold” rating. He acknowledges Palantir’s strong earnings but is concerned about its valuation. Latimore argues that while Palantir is making significant progress, its high price makes it a risky investment at current levels.
Valuation: The Core of the Debate
Even as Palantir impresses with strong earnings and rapid growth, skeptics worry that its stock price has outpaced its fundamentals. PLTR forward P/E ratio stands at over 200! Will the market eventually agree with Mora’s optimistic view, or will concerns about overvaluation keep Palantir grounded? Only time will tell, but one thing is clear: the AI powerhouse isn’t slowing down anytime soon.
Is PLTR a Buy, Sell, or a Hold?
On Wall Street, Palantir is a Hold. The price target for PLTR stock is $88.60, implying a 24.05% downside potential.
