Palantir Technologies (NASDAQ: PLTR) traded modestly higher in early U.S. trading on January 6, with shares changing hands at $174.99, up 0.5% on the day, according to Finbold data.
Despite recent volatility, Wall Street sentiment turned more constructive after Truist Securities initiated coverage on Palantir with a Buy rating and a $223 price target.
Truist forecasts PLTR stock to climb $48 in 2026
At the current price, Truist’s target implies an upside of approximately 27%, underscoring confidence that Palantir’s rally still has room to extend.
In their research note, Truist analyst Arvind Ramnani acknowledged the valuation premium embedded in Palantir shares but argued that the company’s expanding role in enterprise and government AI adoption supports the multiple.
“We acknowledge the significant valuation premium PLTR commands, but continue to see a Buy opportunity given its significant opportunity to drive GenAI adoption for governments and enterprises,” Ramnani wrote.
Truist pointed to Palantir’s Artificial Intelligence Platform (AIP) as a key catalyst behind accelerating momentum.
According to Ramnani, Palantir’s top-line growth has accelerated to around 63% year over year, up sharply from roughly 13% in mid-2023, following the commercial rollout of AIP. Crucially, a growing portion of that revenue growth is translating into profitability, with operating margins now exceeding 50%, highlighting the company’s operating leverage.
While recent strength has been driven primarily by Palantir’s U.S. business, Truist sees international markets as a significant long-term opportunity, particularly as governments and large enterprises look to deploy generative AI tools at scale. The firm described Palantir as a “best-in-class AI asset,” citing deep customer integration and durable relationships.
Palantir stock consolidates after strong run
The initiation comes as Palantir shares consolidate following a strong multi-month rally, with investors weighing valuation concerns against rapidly improving fundamentals.
Truist’s Buy rating adds to a growing bullish narrative that Palantir’s AI-driven growth story remains intact heading further into 2026, particularly as AIP adoption expands beyond early use cases.
