Analyst Praises Palantir's Growth Prospects, Sees Stock Headed To $400 Over Next 5 Years

Rosenblatt sees upside in Palantir Technologies Inc. (NASDAQ:PLTR) amid rising tensions in the Middle East. The firm released a bullish note, maintaining a Buy rating and raising its price target from $150 to $200 on Tuesday.

• Palantir Technologies shares are sliding. Why are PLTR shares down?

Palantir Could See Near-Term Momentum

Rosenblatt analyst John McPeake cited the company’s defense positioning as a reason for the price target increase. McPeake believes the recent Anthropic news bodes well for the stock.

“The U.S. government has ordered a six-month phase out period for Anthropic’s LLMs, which we think will leave ample time to switch over to one of the many other LLMs that are supported by Palantir,” the analyst said.

On top of the $200 target over the next 12 months, the Rosenblatt analyst sees Palantir stock trading at $255 over three years and $393 over five years on the back of accelerating growth in the near term.

The analyst’s targets are based on an 88-times earnings multiple in 2027. He noted that a premium valuation is warranted given the company’s unprecedented growth in recent years.

“An overlay of Palantir’s revenue growth rates against the most successful technology companies of all time shows why they deserve a position in that pantheon,” McPeake said.

“If one looks at the companies that have created the most value in technology when they were a similar size to Palantir, none of them were able to grow as fast as Palantir is forecasted to grow.”

PLTR Stock Dips Tuesday

PLTR Price Action: Palantir Technologies shares were down 0.50% at $144.44 at the time of publication on Tuesday.

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