Bank of America updates Palantir stock forecast after private meeting with CFO

16 Dec 2025, 22:37 · The Fresno Bee

Palantir stock has gained about 20% since its November slump. It appears that the stock has weathered the storm of the AI sell-off, which was triggered by investor fears that AI is a bubble.

Last week was especially difficult, as Oracle and Broadcom both took a sharp drop after reporting earnings, dragging other AI companies down with them.

Bank of America analyst Mariana Perez Mora and her team hosted investor meetings last week, featuring Palantir CFO Dave Glazer, Deployment Strategists Hind Kraytem and Austin Lee, and Investor Relations representative Cary Li, in South Korea. They updated their opinion on the stock afterward.

Bank of America says "PLTR still in a league of its own."Hiroshi-Mori-Stock / Shutterstock.com

Bank of America says "PLTR still in a league of its own"

The team said they came back confident from the meetings, as Palantir's (PLTR) growth continues to build momentum in tandem with enterprise-level AI adoption.

They noted that U.S. Commercial growth continues to show the strongest momentum, thanks to strengthening backlog and lower contract duration. Palantir recently received a two-year contract with the U.S. Navy for ShipOS, worth $448 million, and Mora said that it further aligns the company with the Trump administration's priorities regarding reindustrialization of America.

The team believes Palantir has an opportunity for margin expansion, as operating leverage grows with each use case across the businesses.

Mora wrote: "We continue to see PLTR unmatched in their ability to rapidly achieve in-production solutions and provide human-machine teams with the ability to make the most informed decisions."

In a research note shared with TheStreet, Mora reiterated a buy rating and the target price of $255 for PLTR stock, based on a 15 enterprise multiple estimate for 2035. She used a longer-term valuation methodology to reflect the sustained high-growth and profitability profile of the company.

Mora believes this valuation fairly captures the beneficial position to national security and U.S. government, reflecting a leading role in artificial intelligence platforms, strong balance sheet, and strong profitability.

Analysts noted downside risk factors for Palantir:

Lower-than-expected AI-platforms market growth
Faster-than-expected commoditization
Competitors catching up with technologies,
Stronger-than-expected resistance from government customers to use commercial

off-the-shelf solutions

Upside risk factors for Palantir are:

Stronger-than-expected growth of the AI-platforms market
Higher-than-expected Palantir penetration
Better-than-expected profitability
Better-than-expected successful agreements and investments

Other opinions on Palantir stock

Wedbush analyst Dan Ives and his team rate Palantir with a buy rating and a target price of $230. TheStreet Pro's veteran analyst Stephen Guilfoyle rates Palantir with a buy rating and a target price of $215.

Morgan Stanley reiterated a hold rating and raised Palantir's price target from $155 to $205 in November, according to TipRanks.

Motley Fool's Keithen Drury believes Palantir is "grossly overvalued." He sees a big problem for Palantir in Wall Street's estimates for Palantir's revenue growth rate for next year of 41%, because if they are correct, this will be a slowdown.

In turn, this slowdown will increase the number of years required for growth to bring Palantir's valuation to a reasonable level.

Palantir's recent activity

Palantir announced a three-year renewal of its contract with the DGSI, France's domestic intelligence agency. The company will supply its proprietary software platform to the agency, along with the necessary integration, support, and assistance services for the software's deployment and operational use.

"We are very proud to support the DGSI in its crucial work in the service of France and its fight against terrorism," said Palantir CEO Alex Karp. "This contract renewal reaffirms Palantir's commitment to serving the interests of France since 2016, and ensuring the security of the French people."

More AI Stocks:

The company unveiled Chain Reaction, a platform it describes as "the operating system for American AI infrastructure." Chain Reaction is designed to accelerate the AI buildout with energy producers, power distributors, data centers, and infrastructure builders. The platform's founding partners include CenterPoint Energy and Nvidia.

"We have spent years quietly deploying systems that keep power plants running and grids reliable," Tristan Gruska, Palantir's head of energy and infrastructure, stated. "Chain Reaction is the result of building from the ground up for the demands of AI."

After spending more than 12 years at Palantir, Jim Siders has stepped down from his most recent position of CIO and joined Shield Technology Partners to serve as CEO, according to CNBC.

TheStreet

This story was originally published December 16, 2025 at 2:37 PM.