Truist Securities believes that Palantir still has more room to run after a stunning rally in 2025. The investment firm initiated the software analytics company at a buy rating and price target of $223, implying upside of 28%. Palantir soared 135% last year. Analyst Arvind Ramnani wrote that despite this significant rally, Palantir’s premium valuation is justified by its strong financial profile. PLTR 1Y mountain PLTR 1Y chart “We acknowledge the significant valuation premium PLTR commands, but continue to view it as a Buy given its significant opportunity to drive GenAI adoption for governments & enterprises,” he wrote. The analyst believes that Palantir is in an ideal position for increased artificial intelligence adoption, calling it a “best-in-class AI asset.” “Palantir holds a unique market position in our view, ideally positioned for increased AI adoption by both government organizations and enterprises,” Ramnani wrote. “The company has provided a leading software platform that integrates large organizations’ proprietary data with their operations and security to improve decision-making, which now positions Palantir to capture GenAI implementation with its AIP as organizations race to generate insights and efficiencies with the technology.” Alongside acceleration in Palantir’s U.S. businesses, the analyst also pointed to international AI adoption as a potential long-term driver. Meanwhile, increased capital returns could be further sustained by strong cash flow generation. “Now operating at a 40%+ FCF margin profile, we see potential for Palantir to significantly increase capital returns over the long term,” he said. “While high levels of stock-based compensation had been an investor concern for some time, Palantir has shown it can operate profitably by generating positive GAAP EPS for the past 12 quarters and on track for a 13th straight quarter.”
