The investment community remains sharply divided on Palantir Technologies. Skeptics frequently point to its premium valuation, while proponents champion the company as a future leader in artificial intelligence. This ongoing debate was recently highlighted by a significant new analysis from Truist Securities, which has placed a notably bullish stake in the ground for the data analytics firm.
A Vote of Confidence with a 25% Upside
Initiating coverage on January 6, analysts at Truist Securities assigned a “Buy” rating to Palantir, accompanied by a $223 price target. This projection suggests an approximate 25% increase from current trading levels. The firm’s research team labeled Palantir a “best-in-class asset” within the AI sector, highlighting accelerating business momentum driven by its Artificial Intelligence Platform (AIP).
Truist’s optimistic stance is largely predicated on the company’s positioning in generative AI, which they see as a key growth driver across both government and commercial client segments. This perspective contrasts with more cautious views that argue the stock’s current price already reflects much of its future growth potential.
Conflicting Signals from Major Shareholders
Activity among key investors presents a nuanced picture alongside the positive analyst commentary. U.S. Representative Jonathan L. Jackson (Democrat, Illinois) purchased shares valued between $15,000 and $50,000 in late December via a Morgan Stanley trust account.
Conversely, several institutional investors have been reducing their exposure. Firms including JPMorgan and T. Rowe Price have trimmed their positions in the stock over recent months. This activity indicates that while some insiders demonstrate confidence, a portion of institutional capital is rotating out of the highly-valued equity.
Should investors sell immediately? Or is it worth buying Palantir?
Strong Fundamentals, But Valuation Questions Linger
The bullish thesis finds support in Palantir’s robust third-quarter 2025 results, released in November. The company reported revenue of $1.18 billion, substantially exceeding consensus estimates of $1.09 billion. Earnings per share came in at $0.21.
Key performance metrics from the report include:
- Revenue Growth: A 63% year-over-year increase (compared to 13% in mid-2023)
- Operating Margin: Exceeding 50%
- U.S. Government Business: Growth of 50% year-over-year
Despite these strengths, the stock trades at a price-to-earnings ratio above 400. The broader analyst consensus remains measured, with many firms maintaining “Hold” ratings even after Truist’s optimistic initiation.
All Eyes on the Next Earnings Report
Following a rally to record highs in late 2025, Palantir’s share price has since consolidated near the $177 level. The next major catalyst for direction is likely to be the fourth-quarter earnings report, scheduled for early February 2026. Should Palantir confirm its high-growth trajectory, the path toward Truist’s $223 target remains viable. A disappointing report, however, could place significant pressure on its ambitious valuation.
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