Palantir price forecast: Third-party price target

Discover the Palantir (PLTR) price predictions for 2025 and beyond, with analyst price targets and CFDs trading strategies on Capital.com

By Capital.com Research Team17 hours ago

Palantir price forecast: Third-party price target

Founded in 2003 by Peter Thiel, Alex Karp, Joe Lonsdale, Nathan Gettings, and Stephen Cohen, Palantir Technologies is a US-based software and data analytics company that specialises in artificial intelligence (AI) and big data solutions.

Palantir trades as PLTR on the Nasdaq Global Select Market and entered the US 500 index on 23 September 2024. The company released its Q4 2024 earnings on 3 February 2025, showing 36% year-over-year revenue growth. Palantir’s key platforms include: Gotham, Foundry, and Apollo.

As AI adoption accelerates, how will Palantir’s share price respond? Here are the latest third-party PLTR stock predictions and insights for 2024 and beyond.

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Palantir (PLTR) stock forecast: 2025–2030

Palantir stock price forecasts as of 6 February 2025 show an aggregate price target of $65.5 for the next 12 months, ranging from the high of $125 to the low of $7.50, according to 23 analyst views compiled by Benzinga. The three most recent analyst ratings, given by Citigroup, RBC Capital, and UBS, predict an average -16.64% downside.

The stock had a consensus ‘sell’ recommendation at the time of writing (6 February), with one analyst rating it as a ‘buy’, seven as a ‘hold’ and three as a ‘sell’.

According to Benzinga, Citigroup maintained its ‘neutral’ rating, with a $4-$110 price target; while RBC Capital kept its recommendation to ‘underperform’, with a range of $11-$40. UBS also maintained its ‘neutral’ rating, and gave a $80-$105 target range.

Morningstar raised its PLTR stock valuation on 4 February 2025, providing a ‘three-star’ rating, with a $90 fair value estimate, a ‘very high’ uncertainty rating, and a ‘narrow’ economic moat. Morningstar’s Mark Giarelli writes: ‘Palantir’s PLTR outstanding fourth-quarter results, rapid growth amid the artificial intelligence arms race, and strategic positioning in the AI value chain further solidify our base-case expectations that this company can be the next software juggernaut. As a result, we are raising our fair value estimate to $90 from $79.’

Jefferies’ analyst Brent Thill raised his PLTR price target from $28 to $60, while maintaining an ‘underperform’ rating. Meanwhile, Trading Economics predicts that PLTR will trade at $81.45 by the end of Q1 2025, and $48.12 by 6 February 2026.

Palantir long-term outlook

Past performance is not a reliable indicator of future results.

Wallet Investor’s PLTR stock price prediction indicates sustained price growth over the medium term. The algorithm-based forecasting service projects a price target of $126.333- $128.421 for February 2026 – rising to $309.156 in February 2030.

CoinCodex’s algorithm forecasts an average $35.58 PLTR price in 2026, trading in a range of $30.43 to $46.69. This average grows to $39.73 in 2027, $65.44 in 2028, and then a significant increase to $294.91 in 2029 – anticipating a $266.02 to $298.18 a price range in 2030

Note that analyst PLTR predictions can be inaccurate. Forecasts are based on historical data and shouldn’t be used as a substitute for your own research. Past performance is not a reliable indicator of future results.

Conduct thorough due diligence before trading or investing, and never invest or trade money you can’t afford to lose.

Palantir price drivers: AI market scaling up

Artificial intelligence plays a significant part in Palantir’s market positioning. As such, AI sector growth and sentiment can influence the price of Palantir's (PLTR) share price, among other factors, such as earnings releases and competition.

AI adoption

The rapid scaling of artificial intelligence (AI) positions Palantir at the centre of a transformative shift in enterprise software. As AI integration accelerates across industries, demand for Palantir’s platforms – Gotham, Foundry, and Apollo – continues to grow, particularly within commercial sectors.

This sentiment is shared by Morningstar’s Mark Giarelli, who notes: ‘We are in the early stages of an AI arms race, where most of the economic value is flowing downstream – both to software companies that make AI ‘work’ and to enterprises leveraging AI for productivity gains. We continue to believe that Palantir’s best days are ahead and that the company has a significant runway for its bull case to emerge.’

AI’s role as a revenue driver is supported by Palantir’s recent earnings, where commercial revenue outpaced government contracts for the first time. The firm’s AI-powered solutions enable businesses to operationalise machine learning models without requiring in-house expertise, which factors into its appeal to non-technical users.

Earnings and performance

As a publicly traded company on the US stock market, Palantir releases its earnings on a quarterly basis. Earnings releases are a key fundamental indicator in shares trading as they provide a glimpse into the financial performance of the company behind the stock. Analysts, shareholders and traders closely monitor these releases due to the impact they can have on share prices.

In a bullish scenario, revenue growth and profitability exceed the market’s expectations, potentially boosting sentiment, such as when Palantir published its Q4 2024 earnings on 3 February 2025 – which showed a significant year-over-year increase in revenue compared to Q4 2023 – driving demand for PLTR and lifting the price to an all-time-high the following day.

Conversely, in a bearish scenario, earnings fall below expectations and negatively impact sentiment, potentially leading PLTR’s price to drop. In a neutral scenario, earnings come in at, or close to expectations. In any case, the market’s response to earnings may also be determined by a number of external factors, such as the performance of competitors, macroeconomic conditions, or regulation – and only temporary.

Government contracts

While Palantir’s commercial business gains traction, its core government segment remains a stable revenue foundation. The company has deep ties with various US government agencies, which continues to generate substantial contract renewals. In December 2024, Palantir became the first software company to secure a prime contractor role for a Pentagon programme, strengthening its positioning within national security. In January 2025, Palantir secured a $618.9m contract extension with the US Army that will conclude in 2028.

Valuation & competition

Despite its growth, Palantir faces scrutiny over its valuation. In a 4 February 2025 interview with CNBC’s ‘Squawk on the Street’, Jefferies’ analyst Brent Thill raised concerns about the sustainability of PLTR’s growth: ‘In the last 20 years in software, there’s no name that’s ever sustained this multiple… If you think about other stories that got to these multiples. They didn’t sustain in growth, [and] at some point faded.’

Thill believes that ‘There’s a lot of vendors that have AI solutions and AI infrastructure. So there's other ways to play this AI theme. It’s not just Palantir… There’s a lot of other games in town. So if you look at AI infrastructure right you’ve got Amazon, Microsoft, Snowflake. There’s a number of assets you can own.’

Forbes’ Derek Saul highlights: ‘Palantir is by far the most expensive stock on the S&P via the commonly cited valuation metric of price-to-sales, which compares a company’s market value to its last 12-month revenues. Palantir’s 70 price-to-sales is more than 20 times the S&P average of 3, even dwarfing the 35 price-to-sales ratio of fellow AI wunderkind Nvidia.’

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Palantir stock trading strategies to consider

Trading strategies are designed to provide structured approaches to financial markets – develop your knowledge further by reading our trading strategies guides.

Swing trading: a medium-term trading strategy, lasting a few days to a few weeks. Swing traders aim to capture gains from potential price swings.
Position trading: a longer-term trading strategy, lasting months to years. Position traders aim to profit from long-term trends, rather than short-term price movements.
Trend trending: involves identifying, monitoring, and acting on market trends. Trend traders aim to capture gains for as long as possible from a prevailing market trend.
Day trading: a short-term trading strategy, can be completed within a day. Day traders initiate their strategies when the market opens, closing all positions by market close.

Find out more about stock market trading in our comprehensive shares trading guide.

Continue learning about trading strategies on our trading strategies page.

FAQs

Will Palantir stock go up or down?

Recent forecasts from analysts have varied, with some predicting strong long-term growth driven by AI adoption, while others highlight concerns over valuation and competition. Like all stocks, Palantir’s price is subject to volatility, and both bullish and bearish scenarios remain possible. Forecasts are only projections, and past performance isn’t a reliable indicator of future results. Consider monitoring earnings reports, contract announcements, and macroeconomic developments to assess potential price direction – and technical indicators to inform trading decisions.

Is Palantir a good stock to buy?

Whether Palantir is a good trade or investment will depend on your individual risk appetite and market outlook. Palantir demonstrated strong revenue growth in Q4 2024, particularly in its commercial AI-driven platforms, and continues to secure high-value government contracts. However, its high valuation and competition from established tech firms are factors to consider. Conduct thorough research and consider risk management strategies before trading with real money.

What factors influence Palantir’s share price?

Palantir’s share price movements can be influenced by a range of factors, including earnings performance, advancements in generative AI adoption, government AI regulations, and broader market sentiment. Palantir’s platforms may benefit from increasing adoption of AI-driven solutions by commercial and government sector clients. Conversely, competition from major tech firms is a growing risk.

Earnings reports can influence trading sentiment, with strong performance potentially lifting PLTR’s price, while weaker results may lead to decreases. Government contracts provide revenue stability, though changes in policy or spending could impact future growth. Broader economic conditions, including interest rates and market sentiment, also play a role in determining price movements.