Key Takeaways
- PLTR shares gained 15% over the trading week, finishing at $157.16 on Friday—the strongest weekly showing since last August
- U.S. military operations in Iran sparked renewed investor attention toward defense technology companies, with Palantir positioned as a primary beneficiary
- Approximately 60% of Palantir’s total revenue stems from government contracts, with its technology deployed during recent Iran operations
- Rosenblatt Securities increased its price target to $200, while Piper Sandler maintains a $230 projection
- Pentagon’s blacklisting of Anthropic creates uncertainty around Palantir’s AI collaborations, though analysts suggest viable replacements exist
Shares of Palantir ($PLTR) delivered an impressive performance this week even as broader markets faltered. The defense technology firm finished Friday’s session at $157.16, posting a 2.9% daily increase and marking a 15% weekly advance—the company’s most robust week since last August.
Palantir Technologies Inc., PLTR
The overall market painted a contrasting picture. Tech-heavy indexes declined, with the Nasdaq dropping 1.2% for the week amid weakness in Apple, Google, and Micron. Energy prices surged while February employment data revealed unexpected job losses across the U.S. economy.
Palantir bucked this trend as market participants reacted to escalating U.S.-Iran military tensions. Government-related business represents approximately 60% of the company’s total revenue stream, and Palantir continues expanding its footprint within defense and intelligence communities.
The company’s Maven Smart System delivers artificial intelligence functionality, including weapons targeting capabilities, to military operations. These systems were actively deployed during recent Iran-related missions, according to reports. In 2024, Palantir secured a massive $10 billion Army contract.
President Trump’s statements suggest the conflict may persist, encouraging defense-sector investors to accumulate PLTR shares throughout the week.
Wall Street Upgrades Price Forecasts
Rosenblatt Securities maintained its buy recommendation on PLTR while lifting its price objective to $200 from $150. The firm indicated that Middle East developments create favorable conditions for Palantir’s government contract pipeline, with additional large-scale agreements potentially on the horizon.
Piper Sandler confirmed its overweight stance and kept its $230 price forecast unchanged. Citigroup holds a buy rating with a $260 target. According to MarketBeat’s analyst consensus data, PLTR carries a “Moderate Buy” rating with an average target of $192.68.
UBS shifted its position from neutral to buy earlier this week, though the firm reduced its target to $150.
The company’s latest quarterly results, announced February 2, exceeded Wall Street projections. Palantir delivered $0.25 earnings per share against $0.23 estimates, while revenue reached $1.41 billion—representing 70% year-over-year growth. Net profit margin reached 36.31%.
Pentagon Decision on Anthropic Creates Uncertainty
A potential headwind emerged when the Pentagon placed Anthropic on its supplier blacklist this week. The AI company and defense officials couldn’t reach consensus regarding model usage in autonomous weapons systems and domestic surveillance applications.
A November 2024 partnership united Palantir, Amazon Web Services, and Anthropic to deliver Claude AI models to defense and intelligence organizations. Anthropic had previously secured a $200 million Defense Department agreement and became the first AI laboratory to deploy models on classified government networks.
Palantir hasn’t issued public statements regarding its plans for the Anthropic collaboration. Rosenblatt analysts mentioned “adequate alternatives” exist for Claude models. Piper Sandler expressed more reservation, noting that finding replacements will consume time that could otherwise support expansion initiatives.
Anthropic CEO Dario Amodei announced Thursday via blog post that he has “no choice” but to pursue legal challenges against the blacklisting decision.
The stock received additional support from a broader software sector rally. The iShares Expanded Tech-Software Sector ETF climbed nearly 8% for the week. CrowdStrike, ServiceNow, and AppLovin each posted gains exceeding 15%.
Palantir’s 50-day moving average currently sits at $156.11. The company maintains a market capitalization around $375.9 billion with a price-to-earnings ratio of 249.
