Palantir (PLTR) Stock: Two Analysts Issue Bullish Calls After Recent Pullback – Time to Buy?

TLDR

• Citi analyst Tyler Radke raised Palantir stock price target to $235, predicting 42% upside potential
• Analyst forecasts 70-80% revenue growth for Palantir in 2026, driven by AI platform and defense spending
• Palantir’s U.S. commercial segment surged 121% year-over-year in Q3, now representing 34% of total revenue
• PhillipCapital analyst Paul Chew initiated coverage with Buy rating and $208 target, arguing stock is undervalued using historical metrics
• Company’s forward P/E ratio dropped from 309x to 170x during recent selloff, below one-year average

Palantir Technologies stock has dropped 17% over the past three months. But two Wall Street analysts see opportunity in the decline.

Palantir Technologies Inc., PLTR

Citi analyst Tyler Radke maintained his buy rating and raised his price target to $235. That represents 42% upside from Tuesday’s closing price of $165.70.

Radke argues Palantir has “broken” traditional valuation models. The company’s growth acceleration and margin expansion show the market undervalues the stock.

The analyst points to strong demand for Palantir’s Artificial Intelligence Platform. Government agencies are now adopting AIP after seeing success in commercial markets.

Overall, Radke predicts total revenue growth of 70-80% in 2026. That’s well above most analyst estimates.

Commercial Business Drives Growth

The numbers back up the bullish case. Third quarter revenue grew 63% year-over-year to $725.5 million.

But the U.S. commercial segment stole the show. Sales jumped 121% year-over-year and 29% from the previous quarter.

U.S. commercial now represents 34% of Palantir’s total revenue. The rapid adoption of AIP is driving this growth.

The company’s remaining performance obligations reached $2.6 billion. That’s up 65% from last year. These are contractually obligated sales not yet recognized as revenue.

Management raised full-year guidance. They now expect revenue to grow 53% to $4.4 billion. U.S. commercial revenue should grow at least 104% to $1.43 billion.

Valuation Debate Continues

PhillipCapital analyst Paul Chew also turned bullish. He initiated coverage with a buy rating and $208 price target.

Chew takes a different approach to valuation. He compares Palantir to its own historical range rather than peer companies.

The stock’s forward P/E ratio peaked at 309x in late October. An AI-driven selloff pushed it down to 170x.

That’s below the one-year average of 190x. Using this metric, Palantir looks undervalued for the first time in months.

Chew notes Palantir has captured just 2.4% of its $119 billion addressable market. With AI software growing over 25% annually, the opportunity keeps expanding.

The analyst expects revenue to hit $4.2 billion in 2025. That’s 47% growth year-over-year. Net profit should nearly double.

Commercial revenue growth is now outpacing government sales. The segments are expected to grow 51% and 43% respectively.

Palantir expanded from 60 sectors in 2021 to 90 in 2024. This broadens the company’s addressable market across more industries.

The stock currently trades at 388 times trailing earnings. But bulls argue this matters less when growth is this strong.

The company posted a Rule of 40 score of 114% in Q3. This metric combines revenue growth and profit margin. Anything above 40% is considered excellent for software companies.

Wall Street remains divided on Palantir. The consensus rating is Hold with 6 buys, 10 holds, and 2 sells.

The average price target sits at $189.94. That implies 21% upside from current levels. Both Radke and Chew set targets well above this consensus.

Palantir stock has gained 2,190% over the past three years. The journey hasn’t been smooth. The stock has dropped at least 20% on ten separate occasions during this period.

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