Palantir shares receive a new, highest possible price target from Bank of America analyst

Palantir Technologies (PLTR) stock received a new price target of “street high” from Bank of America Securities analyst Mariana Perez Mora. On September 10, the five-star analyst raised the price target for PLTR from $30 to $50 while reiterating a buy rating. The new price target of $50 represents an attractive upside potential of 43.8% from current levels.

Analyst optimistic about Palantir’s future growth

The analyst is very impressed with the news of Palantir joining the S&P 500 index as of September 23, calling it a “turning point.” Perez urged institutional investors to reconsider Palantir's long-term potential as they underestimate its significant future growth trajectory. Palantir is a major player in the AI ​​market, especially given its solid customer base, which includes both government and large commercial clients.

Perez is particularly encouraged by Palantir's Ontology platform, which enables customers to leverage and automate big data for better decision-making. In addition, the analyst believes in Palantir's ability to securely implement machine learning, AI (artificial intelligence) and big data science opportunities such as quantum computing.

The analyst also pointed to Palantir's unique sales model, where engineers work closely with customers to understand and develop customized solutions, fostering long-term relationships. This model also allows Palantir to command higher prices. She believes that Palantir's 35% operating margin reflects the success of its sales model.

Perez Mora believes that all of these differentiating factors contribute to Palantir's growing customer base and that the company has solid potential for disproportionate growth in the coming years.

PLTR insiders benefit from the price increase

Interestingly, Palantir's co-founder and chairman Peter Thiel has signed a pre-drafted plan (Rule 10b5-1) to sell up to $1 billion worth of PLTR stock. Thiel plans to sell 28,590,737 shares by December 31, 2025 through his investment company Rivendell 7 LLC.

It would be interesting to see the timing of the planned stock sale, as PLTR shares continue to rise each trading day and Thiel has not sold any shares yet. Year-to-date, PLTR shares have gained 102.5%. Looking at the bigger picture of insider trading, TipRanks' Insider Trading Activity tool shows that company insiders are already profiting from the rise in Palantir stock. PLTR stock has a negative insider confidence signal, as company insiders have sold $11.1 million worth of shares in the past three months

Should I buy, keep or sell Palantir?

Not all analysts share the same enthusiasm for PLTR stock as Perez. On TipRanks, PLTR stock has a consensus rating of “Hold” based on four buy recommendations, five hold recommendations, and six sell recommendations. Palantir's average price target of $27.08 implies a downside potential of 22.1% from current levels.

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