TLDR
- Phillip Securities launches Palantir coverage with Buy rating and $208 price target, representing 25% potential upside
- Revenue expected to grow 47% to $4.2 billion in FY25, with commercial business leading at 51% growth rate
- Net profit projected to nearly double in FY25 through better scale and higher-value contract wins
- U.S. market accounts for 66% of revenue and is forecast to expand 66% year-over-year in FY25
- U.S. commercial deal sizes doubled in Q3 FY25, demonstrating strong AI platform momentum
Phillip Securities analyst Alif Fahmi started coverage on Palantir Technologies with a Buy rating. The firm established a $208 price target, pointing to 25% upside potential.
Palantir Technologies Inc., PLTR
The analyst sees faster growth on the horizon. Increased AI platform adoption and robust U.S. demand are driving this outlook.
Fahmi forecasts revenue will jump 47% year-over-year to $4.2 billion in fiscal 2025. The commercial segment is expected to lead this expansion.
Commercial revenue should grow 51%, outpacing government revenue growth of 43%. This represents a shift as more enterprises adopt AI technology.
The company is moving beyond its defense sector roots. Expansion into new industries is opening additional growth opportunities.
U.S. commercial deal sizes roughly doubled during the third quarter of fiscal 2025. This shows increasing customer investment in the AI platform.
Profit Growth to Accelerate
Net profit is expected to nearly double in FY25. Better operational efficiency is fueling this improvement.
The company is also landing higher-value contracts. These deals typically generate stronger profit margins.
The U.S. market produces approximately 66% of total revenue. This region drives the majority of growth.
Fahmi projects U.S. sales will surge 66% year-over-year in FY25. Both business segments are contributing.
Government demand is climbing due to geopolitical tensions. U.S. intelligence spending continues to rise.
The commercial business is gaining speed at the same time. Strong AI platform uptake is powering this growth.
Wall Street Consensus and Valuation
The stock trades at 170 times forward price-to-earnings as of January 16, 2026. This sits below the negative one standard deviation level of 190.
Fahmi acknowledges the premium multiple. However, he believes robust fundamentals warrant additional gains.
Phillip Securities used a DCF model to reach the $208 target. The analysis assumed an 8.3% weighted average cost of capital.
The firm incorporated a 4.2% risk-free rate and 8% terminal growth rate. These inputs reflect expectations for continued expansion.
On TipRanks, the stock carries a Hold consensus rating. Six analysts rate it Buy, 10 recommend Hold, and two suggest Sell.
The average analyst price target sits at $193.76. This represents 17.20% upside from current price levels.
The company recently renewed its three-year agreement with France’s DGSI intelligence agency. This partnership has been in place for almost ten years.
Palantir also expanded its strategic alliance with HD Hyundai in Korea. This represents the company’s largest regional collaboration and will boost Foundry and AI Platform adoption across HD Hyundai’s business operations.
