"Best-in-class AI stock": Truist sees Palantir's growth potential at 28%
Over the past year, Palantir shares have gained 135%.
Investment firm Truist Securities has initiated coverage of Palantir, a developer of data collection and analysis software, with a "buy" recommendation and a target price of $223, CNBC reports. This implies a further 28% increase in the company's share price relative to its closing price on January 5.
Despite the fact that Palantir shares have already risen 135% over the past year, Truist Securities sees growth potential in them. On January 6, the company's shares rose 1.9% in trading.
Palantir's high market valuation is justified by the company's "strong financial profile," noted Truist Securities analyst Arvind Ramnani. "We recognize the significant premium in Palantir's valuation, but still find the stock attractive to buy given the company's significant potential to expand the adoption of generative AI (GenAI) among government agencies and corporate clients," he added. Ramnani called Palantir "the best-in-class asset in the field of artificial intelligence" (quoted by CNBC).
What does Truist Securities see as the drivers of Palantir's growth?
According to Ramnani, Palantir occupies a unique position in the market, ideally suited for expanding the adoption of AI by both government agencies and corporate clients.
The analyst noted that the company presented "a software platform that integrates large organizations' proprietary data with their operational activities and security systems, improving the quality of decision-making." According to Ramnani, this creates growth opportunities for Palantir through its Artificial Intelligence Platform (AIP).
Along with the acceleration of Palantir's business growth in the US, the analyst also pointed to "international AI adoption" as a potential long-term driver.
According to him, the company's strong cash flow creates conditions for increasing payments to shareholders. "The company is currently operating with a free cash flow margin above 40%, and we see potential for a significant increase in Palantir's return on capital in the long term," Ramnani added.
"Although the high level of stock-based compensation has long been a concern for investors, Palantir has demonstrated its ability to operate profitably, generating positive GAAP earnings per share for the last 12 quarters," the analyst noted, emphasizing that Palantir has maintained this trend for 13 consecutive quarters.
What do other analysts say?
On December 22, 2025, William O'Neil initiated coverage of Palantir with a "buy" recommendation. The average target price based on estimates from 23 analysts covering the company's stock is currently $187, which is 7.5% higher than the closing price on January 5. Seventeen of the 23 analysts recommend holding Palantir shares, three recommend buying, and three recommend selling, according to Marketscreener data.
This article was AI-translated and verified by a human editor
