Palantir Just Scored a New 'Buy' Rating. What Comes Next for PLTR Stock.

Palantir Technologies (PLTR) is inching higher on Thursday after a senior D.A. Davidson analyst, Gil Luria, upgraded the AI-focused data analytics giant to “Buy.”

In his research note, Luria lifted his price target on the Nasdaq-listed firm to $175, signaling potential upside of more than 30% from current levels. 

His bullish call brings much-needed reprieve to Palantir stock, which is currently down roughly 27% year-to-date.

Why Luria Recommends Buying Palantir Stock

Luria’s constructive view is primarily rooted in Palantir’s unique position within the fast-growing enterprise AI ecosystem.

As businesses rush to integrate complex large language models (LLMs), they’re discovering a need for what the analyst called an artificial intelligence “orchestration layer.”

Palantir’s foundational platforms, Foundry and Gotham, enable clients to transition seamlessly between structural backend AI updates without causing operational disruptions. 

Luria remains positive on PLTR stock because this edge is particularly significant given Anthropic’s “confrontational tact” with the U.S. government and the subsequent “restrictions on its AI models.”

On Thursday, Palantir also broke above its 20-day moving average (MA) — a technical setup that signals continued bullish momentum ahead. 

Are PLTR Shares Still Overvalued?

According to the D. A. Davidson analyst, Palantir shares’ risk-reward profile has been reset for long-term investors following their year-to-date decline.

The company may still be trading at a premium to its software peers, but that premium is justified given it’s growing about twice as fast as them, he added. 

Note that the derivatives market also agrees with Gil Luria on PLTR, with the upper price on options contracts expiring mid-October currently set at $156, signaling potential upside of nearly 20% from here.

This means traders continue to see Palantir Technologies Inc as attractive as sovereign and commercial demand accelerate through the remainder of this year. 

What’s the Consensus Rating on Palantir?

It's also worth mentioning that D. A. Davidson is actually among the most conservative Wall Street firms on Palantir Technologies. 

According to Barchart, the consensus rating on PLTR shares is currently “Moderate Buy," with the mean price target of about $194 signaling potential for a more than 45% rally over the next 12 months.