Truist initiated coverage of Palantir Technologies Inc. with a Buy rating on January 6, setting a price target of $223. The firm told investors that the adoption of generative AI could compress decades of enterprise technology impact into five to ten years, providing Palantir with a unique market position. It said the company is ideally positioned for increased AI adoption by governments and enterprises.
AI-driven momentum has propelled the company's U.S. business, resulting in 77% year-over-year growth in fiscal Q3 2025, according to Truist. The firm expects similar tailwinds to gradually expand Palantir's international operations. It added that the company holds potential to meaningfully bolster capital returns over time, with free cash flow margins surpassing 40%, likely through share repurchases that can offset stock-based compensation dilution.
However, RBC Capital reiterated a Sell rating on Palantir Technologies Inc. on January 5 and set a price target of $50.00.
Palantir Technologies Inc. builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis. Its commercial segment manages customers in non-government industries, while the government sector includes customers from the United States government and non-United States government agencies.