DA Davidson has been promoted Palantir (Nasdaq: Belter) to “buy” from “neutral” on July 2, with the price target on Palantir stock raised from $165 to $175.
As part of the bullish call, analyst Gil Loria said the company’s rapid earnings growth helped justify its previously stretched valuation, with some competitive advantages now emerging.
According to the analyst, Palantir’s biggest advantage lies in its AI status (Amnesty International) formatting platform rather than providing one large language model.
More specifically, Luria believes that as enterprises increasingly adopt AI solutions, many are realizing that they need an orchestration layer capable of managing multiple AI models rather than relying on a single provider, which is where Palantir steps in.
“Palantir has many competitive advantages over all other software companies, which have become even more pronounced in the age of artificial intelligence. More recently, the realization by enterprise customers that the orchestration layer is essential has increased the need for Palantir. With this in mind, we are upgrading our rating to Buy from Neutral and raising our price target to $175 from $165.” “Loria wrote.
Palantir’s price target was raised based on product flexibility
Luria also claimed that Anthropic provided additional evidence to support Palantir’s business model.
Specifically, he claimed that government restrictions affecting Anthropic’s AI solutions have highlighted the risks companies face when building applications directly on top of a single frontier model provider. In order to combat this issue, Palantir allows customers to simply switch out the underlying AI model with minimal disruption.
This dynamic reduces the likelihood of customers bypassing Palantir and working directly with model developers like OpenAI or Anthropic, which is often cited as one of the biggest strategic risks facing Palantir, Loria said.
“By contrast, a company that has built its business on an orchestration tool, like Palantir, will see only a minor shift as Palantir replaces AI models within its solution. We believe this evolution removes the biggest perceived threat to Palantir: the idea that companies will turn to Anthropic and OpenAI to solve their biggest problems.” Loria added.
Palantir stock price target raised by Wall Street analysts
Given what other analysts have said recently, Wall Street appears to view Palantir as a “moderate buy,” with an average price target of $181.64 for the next 12 months, per month. TipRanks.
That is, a total of 20 analysts, on average, see PLTR shares rising 44.64% in the next year. Fourteen of them recommend buying, four suggest holding, and two support selling the stock.
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