TLDR
- Palantir stock hit a new all-time high of $141.41 on Monday, up 2.9%, with shares trading at $142.75 in premarket Tuesday
- Loop Capital raised its price target to a Street-high $155, maintaining a “Buy” rating despite the stock’s expensive valuation
- Shares have surged nearly 500% from last June’s 52-week low and gained 87% year-to-date through strong AI and defense positioning
- The stock trades at 203 times forward earnings compared to S&P 500 average of 22.3, making it the most expensive in enterprise software
- Only 25% of analysts covering the stock have Buy ratings, with consensus target price of $107 suggesting potential 25% downside
Palantir stock keeps climbing. The AI-focused defense contractor closed at an all-time high of $141.41 on Monday, up 2.9% for the session.
Shares continued their momentum in premarket trading Tuesday, rising 1% to $142.75. The stock also reached an intraday record of $144.86 during Monday’s session.
The numbers tell quite a story. Palantir has gained nearly 500% from its 52-week low hit in June last year.
This year alone, shares have jumped 87%. The company has notched 17 record closes in 2025, with five coming just this month.
That compares to 23 record closes for all of 2024. The rally shows no signs of slowing down despite growing concerns about the stock’s rich valuation.
Analyst Upgrade Fuels Latest Rally
Loop Capital added fuel to the fire Monday with a bullish note on Palantir. Senior analyst Mark Schappel maintained his “Buy” rating and raised his price target to a Street-high $155.
That target implies 13% upside from the stock’s previous close. Schappel sees Palantir as “an early software leader in enterprise AI.”
He believes the company’s Artificial Intelligence Platform (AIP) is well-positioned as AI use cases expand across industries. The analyst thinks competition concerns are overblown for now.
Schappel notes that rivals like Databricks and Snowflake focus on historical data analysis. Palantir, by contrast, emphasizes real-time decision-making capabilities.
The analyst recommends building a small initial position at current levels. He suggests buying more aggressively on any pullbacks.
Valuation Concerns Mount
The rally has pushed Palantir’s valuation to eye-watering levels. Shares now trade at 203 times forward earnings.
That compares to an average of 22.3 times for S&P 500 companies. The stock trades at 142 times estimated 2027 earnings, making it the most expensive name in enterprise software.
Wall Street remains divided on the stock’s prospects. Only 25% of the 18 analysts covering Palantir have Buy or equivalent ratings.
The consensus price target sits at $107, suggesting potential downside of about 25% from current levels. That’s a far cry from Loop Capital’s bullish $155 target.
The company has been riding two major tailwinds. Strong demand for AI solutions has boosted its commercial business.
Heightened geopolitical tensions have also helped, given Palantir’s heavy exposure to U.S. Defense Department contracts. The company reported strong growth in both segments during its latest quarter.
U.S. government revenue jumped 45% year-over-year. Commercial revenue growth was even stronger at 71%.
Loop Capital believes this momentum can continue despite the stock’s expensive valuation. The firm sees long-term potential in what it views as a fast-growing market.
Palantir shares closed Monday at $141.41, hitting their 17th record close this year.
