DA Davidson raised its price target on Palantir Technologies (NASDAQ: PLTR) to $250 from $200 in a September 11 research note, with analyst Gil Luria maintaining a 'Buy' rating on the software and artificial intelligence company.
The analyst cited strengthening customer interest in AI sovereignty as a key driver supporting Palantir's position in the enterprise AI market. Luria highlighted the company's ability to serve as a control plane and orchestration layer, enabling organizations to manage multiple AI models while controlling costs.
Palantir's expanding role in helping customers select, deploy, and manage AI systems across different providers resonates with enterprises seeking greater flexibility rather than relying on a single AI vendor, according to DA Davidson. The higher valuation target was also supported by broader strength across software stocks and confidence in the company's long-term growth trajectory.
According to TipRanks analyst consensus data, 23 analysts cover Palantir stock, with an average 12-month price target of $200.53 and a high target of $255.
Recent Financial Performance
The upgrade follows strong second-quarter results. Palantir reported revenue of $1.94 billion, up 93% year-over-year, with adjusted earnings per share of $0.41, exceeding Wall Street expectations.
U.S. commercial segment revenue surged 149% to $764 million, while U.S. government revenue grew approximately 90%. Following the earnings report, Palantir raised its full-year 2026 guidance, expecting revenue of approximately $8.15 billion, representing annual growth exceeding 80%, with adjusted free cash flow projected between $4.5 billion and $4.7 billion.
Strategic Developments
Palantir expanded its partnership with Nvidia by integrating Nemotron open models into Foundry and its Artificial Intelligence Platform (AIP), supporting sovereign AI deployments for sensitive industries and supply chains.
While analysts remain optimistic about Palantir's AI-driven growth and expanding commercial business, valuation continues to be debated. The stock trades at premium multiples compared to most software peers, with investors monitoring whether the company's rapid growth can sustain its current pace.
