Can further growth be expected?

With Palantir Technologies (NYSE: PLTR) stock price establishing itself well above the $30 mark, market attention continues to focus on whether the stock has further upside potential.

The stock has been bullish lately, largely due to the company's commitment to artificial intelligence (AI), inclusion in the coveted S&P 500 index, and impressive second-quarter 2024 results.

In the second quarter, the software giant saw its customer base grow 41% to 593, while revenue rose 27% to $678 million. Based on these results, CEO Alex Karp predicted that Palantir is likely to maintain this momentum, citing high demand for software and the company's ability to harness artificial intelligence.

Palantir Outlook 2025

Looking ahead to 2025, it remains to be seen whether these fundamentals will catalyze further growth. In fact, some analysts believe the company's product offering could be a key driver of sustained upward momentum in the coming months.

For example, Forrester Research noted that Palantir's Artificial Intelligence Platform (AIP) is a leading player in AI and machine learning and is likely to attract market interest. The experts found that 14 vendors recognized Palantir's AIP as a top-tier product with strong data ingestion and preparation capabilities, beating out giants like Microsoft (NASDAQ: MSFT).

Bank of America (NYSE: BAC) also expressed its bullish sentiment, insisting that PLTR is likely to trade at $50 and reiterating its buy rating in a September 16 analysis.

According to BofA analyst Mariana Perez, Palantir's addition to the S&P 500 is a turning point that will bring institutional capital into PLTR. BofA also believes there are significant opportunities for revenue growth and notes that Palantir will likely become the U.S. government's standard data operating system.

Deutsche Bank's Brad Zelnick, on the other hand, maintains his “Strong Sell” rating on the stock, predicting that PLTR is likely to trade at $21 over the next 12 months. Although Zelnick acknowledged the importance of Palantir's strong performance in the second quarter of 2024, he cautioned that the share price already reflects the company's bullish characteristics.

Meanwhile, Citi analyst Tyler Radke (NYSE: C) gave Palantir a Neutral rating and a $30 price target on Sept. 11. Citi's outlook was influenced by what the banking firm described as the “erratic” nature of the government business, which is due to uncertainties related to the upcoming election and the early stages of AIP monetization.

Wall Street consensus on PLTR

Leaving aside the individual analysis, the consensus of 15 Wall Street analysts at TipRanks predicts a downtrend for PLTR over the next 12 months, with an average price target of $27, representing a 25% drop from the current valuation. The experts have a high forecast of $50, while the lowest target is $9. Most experts out of six recommend selling the stock.

PLTR was trading at $36.5 at press time and has gained about 0.6% in the past 24 hours. The stock has gained over 7% in the past week. Following the company's inclusion in the S&P 500 Index, Palantir has risen over 20%, driving the software company's valuation to a market cap of $81 billion.

Technical Outlook for PLTR

A review of the technical data shared by the charting platform TrendSpider noted that following the momentum PLTR has experienced with its inclusion in the S&P 500, the stock is likely to trend higher, driven by renewed investor interest and a bullish technical setup.

The analysis suggested that the stock is an “absolute runaway train,” highlighting a breakout from a well-formed bull flag pattern, which is often seen as a signal of strong upside momentum after a period of consolidation.

In summary, despite the current performance, Palantir stock is at a crucial inflection point. The strong momentum is driven by inclusion in the S&P 500, solid second-quarter 2024 results, and increasing demand for the company's AI platform.

While optimistic analysts foresee growth potential, others remain cautious and point to potential risks. Looking ahead to 2025, the stock's performance will depend on whether Palantir can maintain its current momentum and capitalize on its strategic opportunities, particularly in AI and its ability to attract government contracts.

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