Palantir stock hit its all-time high in trading on Friday.
Piper Sandler has initiated coverage on Palantir Technologies Inc. (NASDAQ: PLTR) with an Overweight rating and a bullish price target of $170, positioning the data analytics firm as a potential long-term winner in the artificial intelligence revolution.
In a research note published Friday, analysts praised Palantir’s unique growth and margin profile, calling it a “one-of-a-kind growth+margin model” that could scale to a $24 billion run-rate by calendar year 2032 if the company maintains its trajectory.
According to the analysts, Palantir stands out as an “AI secular winner,” capitalizing on structural demand for AI across two total addressable markets (TAMs) exceeding $1 trillion each.
While the firm acknowledged that Palantir’s valuation remains elevated, it maintained that the stock could deliver transformative returns, provided the company continues its expansion and margin sustainability.
From market lows to AI all-star
Palantir’s journey has been anything but smooth. Piper Sandler noted that it has followed the company for over five years, tracking its evolution from a “coveted late-stage private” firm to its direct public listing in 2020, through a “trough of disillusionment” in 2022 when shares plummeted to $6.
That downturn has since been replaced by a dramatic resurgence.
Analysts described the comeback as a “rise of the phoenix” moment, positioning Palantir as an AI All-Star on the back of accelerating growth.
Despite the optimism, Piper Sandler emphasized the high-risk nature of investing in Palantir.
The firm warned that shares are “hyper-volatile,” with multiple historical drawdowns in the 20-29% range.
As such, it recommended a “buy on a drawdown” strategy for investors seeking exposure.
Still, the firm’s bullish outlook is underpinned by Palantir’s robust profitability, growing demand across government and commercial sectors, and strong execution in the AI space.
Contracts, partnerships, and record highs
Palantir’s stock recently reached an all-time high of $160.39.
The company boasts impressive gross profit margins of 80% and a staggering 496% 1-year return, reinforcing investor enthusiasm.
The firm has also achieved major contract wins and strategic partnerships.
Notably, the US Army awarded Palantir a $100 million contract for its Next-Generation Command and Control prototype, part of a broader $3 billion Department of Defense request for fiscal 2026.
The company also signed a two-year agreement with Knightscope Inc. through its FedStart program and partnered with Accenture Federal Services to deliver AI-driven solutions to US federal agencies.
Additionally, a collaboration with Tomorrow.io will allow Palantir to integrate weather data into its platforms, enhancing automated decision-making capabilities across multiple sectors.
Other analysts are also taking notice. Wedbush recently raised its price target to $160, citing confidence in Palantir’s expanding AI capabilities and its growing relevance in federal and commercial markets.
As Palantir continues to scale both technically and financially, the debate among investors will likely center on whether its valuation is justified by long-term growth—or vulnerable to the volatility that has defined its past.
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