Where is Palantir Technologies Inc. (PLTR) Headed According to Analysts?

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best long term growth stocks to buy according to hedge funds. Truist initiated coverage of Palantir Technologies Inc. (NASDAQ:PLTR) with a Buy rating on January 6, and set a price target of $223. The firm told investors that the adoption of GenAI could “compress the market impact” of the last four decades of enterprise technology into a mere five to ten upcoming years, which is a backdrop that provides Palantir Technologies Inc. (NASDAQ:PLTR) with a “unique market position”, “ideally positioned for increased AI adoption by both governments & enterprises.”

The firm added that AI-driven momentum has propelled the company’s US business, resulting in a 77% year-over-year growth in fiscal Q3 2025. It expects similar tailwinds to gradually expand Palantir Technologies Inc.’s (NASDAQ:PLTR) international operations as well. In addition, the company holds the potential to meaningfully bolster capital returns over time, with free cash flow margins surpassing 40%. According to the firm, this is likely through share repurchases that can position the company to offset stock-based compensation dilution.

However, RBC Capital reiterated a Sell rating on Palantir Technologies Inc. (NASDAQ:PLTR) on January 5 and set a price target of $50.00.

Palantir Technologies Inc. (NASDAQ:PLTR) 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.

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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Disclosure: None. This article is originally published at Insider Monkey.