Palantir Stock: DA Davidson Sees 30% Upside, Upgrades to 'Buy'

A significant bullish signal has emerged from Wall Street for artificial intelligence and data analytics company Palantir Technologies (PLTR). DA Davidson analyst Gil Luria upgraded the company's stock rating from "Neutral" to "Buy" while raising his price target from $165 to $175. This revision implies a potential upside of approximately 30% to 39% from current levels for the stock.

Gil Luria's decision is based on Palantir's valuation becoming more reasonable recently and a strong increase in its profitability. The analyst noted that the company's forward price-to-earnings (P/E) ratio, which previously exceeded 250x, has now decreased to approximately 71x as profits have soared. Palantir reported better-than-expected financial results in the first quarter of 2026, beating earnings per share (EPS) expectations with $0.33 against an anticipated $0.28, and revenue surpassing estimates at $1.63 billion. The year-over-year revenue growth stood at an impressive 84.7%.

This positive development has created an expectation of a market recovery for Palantir shares, following a year-to-date decline of over 20%. The company's market capitalization hovers between $301 billion and $322 billion, with the stock trading above its 52-week low of $106.37. Across Wall Street, Palantir generally holds a "Moderate Buy" consensus rating, with analysts' average price targets ranging from $181.64 to $190.85.

Luria emphasized Palantir's unique position in the AI landscape, highlighting its role as an AI orchestration platform rather than merely a single large language model provider. Enterprise customers are increasingly recognizing the necessity of an orchestration layer capable of managing multiple AI models, making Palantir's solution indispensable. This dynamic is particularly valuable in an era where dependence on a single AI model provider carries risks, as exemplified by tensions between Anthropic and the U.S. government, underscoring the flexibility Palantir offers.

The company recently announced a strategic partnership with Nvidia to integrate Nvidia's Nemotron open-source AI models into its platforms for U.S. government agencies and critical infrastructure operators. Furthermore, the U.S. Army's selection of Palantir Foundry as the cloud data layer for its Next Generation Command and Control program solidifies the company's robust position in the government segment. Analysts anticipate that Palantir's strategic positioning and strong financial performance will continue to support its long-term growth potential. The company is expected to expand its market share as corporate demand for AI solutions increases.