NEW YORK, Jan 22, 2026, 13:34 EST
- Phillip Securities kicked off coverage on Palantir with a “Buy” rating and set a $208 price target.
- A fresh bullish call emerges amid debate over Palantir’s premium valuation.
- Contract signals and AI demand are drawing attention as Palantir’s next update approaches, say commentators.
Phillip Securities kicked off coverage of Palantir Technologies on Thursday, assigning a “Buy” rating and setting a $208 price target. Palantir shares were trading near $165 in the U.S. that day. (GuruFocus)
This call arrives at a tricky time for those who prefer straightforward stories. Palantir’s recent surge has spotlighted the price investors are paying per dollar of sales and profit—and what the company must achieve to prevent that valuation from unraveling.
The market is also wrestling with a familiar challenge in AI stocks: distinguishing real demand from hype-driven prices. Palantir, which provides data-analysis software to government bodies and businesses, has seen renewed interest thanks to its recent AI-focused efforts, bringing it back into the spotlight.
Phillip Securities, in its initiation note, suggested the shares might “re-rate higher” as fundamentals get stronger and the addressable market grows. The firm pointed out that Palantir has grabbed “just” 2.4% of a $119 billion market opportunity it identified back in 2020. It also highlighted that the company’s AI software has been growing at over 25% annually, which could push that market potential even further. (TipRanks)
On the flip side, a valuation-focused analysis argued the bar is already set high. According to a Motley Fool article, Palantir’s forward price-to-earnings ratio sits around 172, while the stock trades at about 112 times its trailing 12-month sales. Their reverse discounted cash flow model suggests Palantir would need to grow revenue by 30% to 40% annually for several years to justify its current price. CEO Alex Karp dismissed these concerns in November, saying “outsiders” have trouble assessing Palantir’s business. (The Motley Fool)
Summit Research, writing for Seeking Alpha, looked at Palantir through a different lens, noting it was trading at about 167 times projected earnings over the next twelve months and 64 times expected sales for the same period. The report highlighted “accelerating RPO” — or remaining performance obligations, which means contracted work not yet booked as revenue — as a key indicator, suggesting revenue visibility might extend into upcoming quarters. (Seeking Alpha)
At the heart of the divide: bulls point to the contract pipeline and AI-driven adoption as sources of ongoing upside surprises, while skeptics counter that even solid execution feels routine when the multiple is already stretched.
The downside risk is clear. If growth slows, big contracts fall through, or margins fall short, the stock’s valuation could shrink quickly — and even minor tweaks to assumptions in models like discounted cash flow can shift “fair value” dramatically.
Phillip’s target edges above the range favored by many analysts, yet the market mood stays wary. The real checkpoint is Palantir’s upcoming quarterly report and 2026 guidance. Investors will be scrutinizing bookings, backlog, and the share of growth driven by steady commercial contracts versus sporadic government projects.
