Prediction: Palantir Will Be a $200 Stock This Year
Palantir Technologies Inc. (NYSE: PLTR | PLTR Price Prediction) has been on a roll in 2025. Up 100% in 2025, it is one of the best performing stocks in the past 12 months. Not many companies have been able to…
Palantir Technologies Inc. (NYSE: PLTR | PLTR Price Prediction) has been on a roll in 2025. Up 100% in 2025, it is one of the best performing stocks in the past 12 months. Not many companies have been able to deliver this performance in a highly volatile year. The stock has soared 475% in 12 months and over 1500% in five years. PLTR stock recently hit $150, and Wall Street continues to remain bullish on it. The stock will be worth $200 this year, and I am certain it will continue to rise higher.
Palantir has an exceptional product
Palantir serves many popular organisations, including the Department of Defence, and its recent surge is driven by revenue growth. The company has a solid application that allows users to input data into the platform and receive insights. This software, the Artificial Intelligence Platform, was intended for government use but has become highly popular with commercial clients too. Organizations are increasing AI spending, and Palantir is set to benefit.
In 2024, the company held boot camps to allow users to see how the software fits their business model, and this strategy was a success. It attracted new commercial clients, and Palantir saw significant growth in commercial revenue.
In the first quarter, government revenue was up 45% and the commercial revenue soared 71% year over year. Overall, it saw a 39% revenue growth in the quarter to $884 million. U.S. revenue jumped 55% and the customer count was up 39% year-over-year. The management had raised the revenue guidance for the full year.
Improved profitability and growing margins
Palantir has also seen an improvement in profitability with improved gross and operating margins. As the business expands, it will continue to see higher profits. Its remaining commercial deal value was up 127% year-over-year to $2.32 billion.
This shows that the company is set to have another strong quarter. Palantir is set to announce results on August 4, and management has guided for revenue between $934 million and $938 million with a GAAP operating income in the range of $401 million to $405 million, a slowdown from the previous quarter.
The company is maturing as a business, and we could see profit margins improve in the coming years. There could be significant growth, and the adoption across Europe could benefit the business. Palantir has closed 139 deals in the first quarter with customers worth over $1 million and another 31 deals worth at least $10 million.
It has several interesting partnerships that will ensure it remains in the top spot. Palantir is working with The Nuclear Company, a startup, to install its software for the nuclear energy supply chain. Further, it announced the launch of a new program to accelerate warship production with BlueForge Alliance. New industries could become a growth driver for Palantir’s business.
Wall Street is bullish on the stock
Analysts are bullish on the stock with a strong buy rating. Piper Sandler has an overweight rating with a price target of $170. The analyst believes the company is set for “one-of-a-kind” growth. Wedbush analyst Dan Ives has a price target of $160 and calls it one of the top names to own this year.
Yes, the stock isn’t cheap. It is trading at a premium, but the company is worth it. The company could be overvalued right now with a market cap of $365 billion and a P/E ratio of 672 . Its premium pricing raises expectations, but the company has the ability to deliver.
Contact [email protected] for any questions or corrections.
Vandita Jadeja
Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
