Palantir 'Most Underappreciated' Tech Name Poised For Another Breakout In 2025, Says Analyst: Retail Shares Optimism

Shares of artificial intelligence-levered data analytics company Palantir Technologies, Inc. ($PLTR) have been on a tear this year, gaining over 300%. A bullish analyst said the company is well positioned for another year of outperformance in 2025.

Palantir is the best-performing S&P 500 stock this year, thanks to the company’s improving fundamentals and the tech-led broader market strength. Revenue for the nine months ended Sept. 30 climbed 26% to $2.04 billion and GAAP earnings per share (EPS) jumped year-over-year from $0.05 to $0.16.

The U.S. contributes to about two-thirds of Palantir’s total revenue, and about two-thirds of the U.S. revenue comes from the government.  President-elect Donald Trump's pro-business and his accents on deregulation bode well for the company.

Palantir provides its commercial and government customers with platforms such as the Foundry, Gotham, Apollo and the AIP.

Wedbush analyst Daniel Ives, while issuing his tech predictions for 2025, said, “We believe the most underappreciated tech name in our universe still continues to be Palantir.”

The analyst expects 2025 to be another breakout year as its flagship AIP product transforms AI use cases within enterprises, potentially making the Messi of AI the next Oracle.

Not everyone on the sell side is equally enthusiastic about Palantir. According to TipRanks, the average analysts’ price target for the stock is $38.73. This consensus price target suggests there could be more than 46% downside from current levels.

Late Wednesday, Baird initiated coverage of Palantir with a ‘Neutral’ rating and $70 price target, TheFly reported. The company’s strong growth potential is offset by the stock’s valuation, given the strong year-to-date performance, analysts at the firm said.

PLTR sentiment and message volume December 12, 2024, premarket as of 7:25 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Palantir flipped from ‘bearish’ to ‘bullish’ (61/100), with the improvement accompanied by a 'high’ message volume.

In premarket trading, as of 7:25 a.m. ET, Palantir stock was down 0.25% at $72.33.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<