"Palantir's valuation is currently the most attractive": Analyst Predicts 39% Stock Gain

D.A. Davidson analysts Gil Luria and Lucky Schreiner have upgraded their rating on shares of Palantir Technologies, a provider of AI platforms and defense software, and now recommend buying the stock. The company’s valuation has become attractive after falling 27% since the start of the year, and its competitive advantages are becoming more apparent amid Anthropic’s conflict with U.S. authorities, according to CNBC.

D.A. Davidson upgraded its rating on Palantir shares from Neutral to Buy and raised its price target from $165 to $175. The analyst’s new target implies a 39% increase in the stock price relative to the closing price on Wednesday, July 1. On July 2, Palantir shares rose 2.7%.

Palantir’s market valuation has become more attractive amid rapid earnings growth and a decline in its stock price, Luria noted. According to FactSet, the stock is currently trading at a price-to-earnings (P/E) ratio of around 71. This is significantly lower than the peak of over 250 reached in early November 2025, the TV channel notes.

"Palantir's valuation is the most attractive in recent memory, especially compared to other fast-growing software companies," CNBC quotes a note from D.A. Davidson as saying.

Palantir has several competitive advantages over other software companies, and in the age of AI, this is becoming even more apparent, analysts write in a Barron's report. The recent realization among corporate clients that they need orchestration—a platform for coordinating various AI models and data—only underscores the need for Palantir, they argue.

Palantir looks particularly favorable in light of Anthropic's conflict with the White House, which resulted in a temporary ban on Anthropic's flagship model, Fable 5, for all non-U.S. users in mid-June. The restrictions were lifted on July 1.

“If a corporate client were to build its business directly on top of these [Anthropic] models, the consequences for its business could be catastrophic. In contrast, a company that built its business on an orchestration tool, such as Palantir’s, would face only a minor transition, as Palantir changes the AI models within its solution,” CNBC reports, citing analysts at D.A. Davidson.

Palantir’s stock has risen 17% over the past four trading days following the company’s announcement of a new strategic initiative with Nvidia to develop custom artificial intelligence models for the U.S. government, Barron’s notes. However, the company’s stock is down nearly 30% year-to-date.

On June 29, the investment firm President Capital upgraded its recommendation on Palantir shares from Neutral to Buy and raised its price target from $25.5 to $133. This valuation implies a 5.8% increase in the stock price relative to the most recent closing price.

According to MarketWatch, Palantir shares have a total of 34 analyst recommendations: 22 to buy (Buy and Overweight), nine to hold (Hold), and two to sell (Sell).

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