Piper Sandler Says Palantir (PLTR) Hasn't Reached Peak Growth Yet - Raises Target to $201

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the AI Stocks Analysts Are Watching Closely. On October 14, Piper Sandler raised the price target on the stock to $201 from $182, while maintaining its Overweight rating. The firm sees continued upside potential in the AI stock.

According to analyst Clarke Jeffries, there is no argument that Palantir’s valuation leaves no margin for error. This is particularly true in the event of a slowdown in growth. However, the firm asserted that it doesn’t spot any catalyst that will halt the company’s momentum, noting that Palantir “has not reached peak growth.”

Jeffries is of such a view because of the tremendous visibility on future revenue (more than $7B of defined contract value, along with an estimated nearly $4B of IDIQ contract value).

Other factors include Palantir’s accelerating triple-digit growth in Commercial bookings year-to-date, and its exceptional wallet share opportunity across $1T of U.S. Defense Spending.

The firm believes that the Defense sector is transitioning, moving toward cheaper and flexible sources that are grounded in software and unmanned systems.

“We pose this scenario to investors – if 0.5% of Defense spending moved in the favor of Palantir, the company’s overall gov. business could increase 5x & still be 7x smaller than Lockheed Martin,” said Jeffries.

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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