Analysts Bullish on Palantir Stock After Recent Pullback
Palantir Technologies (PLTR) has seen a 17% decline over the past three months, but two Wall Street analysts are now making bullish calls. Citi's Tyler Radke raised his price target to $235, suggesting 42% upside potential, while PhillipCapital's Paul Chew initiated coverage with a Buy rating and a $208 target.
The company's U.S. commercial segment surged 121% year-over-year in Q3, now accounting for 34% of total revenue. Analysts project 70-80% revenue growth by 2026, driven by Palantir's AI platform and increased defense spending. The forward P/E ratio has dropped from 309x to 170x during the selloff, making the stock appear undervalued by historical metrics.
Radke argues Palantir has 'broken' traditional valuation models, with growth acceleration and margin expansion signaling market undervaluation. Government adoption of its AI Platform is gaining momentum following commercial success. 'We see tailwinds in the government segment, driven by accelerating defense budgets and modernization urgency,' Radke noted, predicting a 'ramping defense super cycle.'
