While Palantir (NASDAQ: PLTR) is seeing a surge in government contracts, Wall Street analysts remain cautious.
Notably, momentum in the stock accelerated after reports that President Donald Trump tapped Palantir to organize personal data for several federal agencies, including the DHS and IRS.
Palantir also partnered with Fannie Mae (FNMA) to tackle mortgage fraud and secured a $795 million contract extension with the U.S. Army, bringing the total to $1.3 billion.
The Fannie Mae deal involves launching an AI-powered Crime Detection Unit. At the same time, the Army contract extends licenses for the Maven Smart System (MSS) software, which enhances military operations with AI-driven analytics and decision-making tools.
These developments have kept PLTR stock well above the $100 mark. At close of the last session, the stock was trading at $131.78, up over 7%. Year-to-date, Palantir has been one of the hottest names on Wall Street, rallying 75%.
Analysts set PLTR stock price target
Still, Wall Street analysts are sending mixed signals. According to TipRanks, Palantir holds a consensus ‘Hold’ rating from 18 analysts, with a breakdown of 3 ‘Buy,’ 11 ‘Hold,’ and 4 ‘Sell’ recommendations.
The average 12-month price target is $100.13, with a high of $150 and a low of $40. This average target implies a 24% downside from the current price.
Among the analysts, Wedbush’s Dan Ives upgraded the stock to ‘Outperform’ on May 23, setting a $140 target. He pointed to the $795 million U.S. Army contract extension as a major catalyst. He noted Palantir’s strong positioning for future government AI spending, including potential involvement in the $175 billion Golden Dome project.
On May 13, Bank of America’s Mariana Perez Mora raised her target to a Street-high $150, citing Palantir’s tailored AI solutions, improving earnings, faster product rollouts, and better client conversion rates. She highlighted a new U.S. government directive to modernize defense acquisitions as a potential long-term growth driver.
However, Citi’s Tyler Radke remains cautious. On May 7, he lifted his price target to $115 but maintained a ‘Hold’ rating, warning that Palantir’s high valuation, roughly 55 times expected 2026 sales, leaves little room for error. He noted the company’s need for flawless execution amid margin pressures from spending and tax swings.
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