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Bank of America has increased its price target for Palantir Technologies Inc. (NASDAQ: PLTR) from $180 to $215 per share. The revision represents an estimated 23% potential upside from the company’s recent share price. The firm reiterated its "Buy" rating, highlighting Palantir’s agentic AI technology as a key driver of growth.
The company’s stock has gained 133% year-to-date, driven by strong earnings, ongoing government contracts, and increased interest from retail investors. Palantir reported second-quarter revenue of $1 billion, surpassing expectations by $60 million and recording a 48% year-over-year increase.
Operating income rose 83% to $464 million, while free cash flow tripled to $569 million. The company’s latest earnings and expanding global presence have supported investor confidence.
Bank of America underscored Palantir’s deployment of agentic AI, demonstrated at its AIPCon8 conference, as a unique differentiator. The bank noted that forward-deployed engineers (FDEs) utilizing this AI technology give Palantir an edge over competitors. According to Marina Perez Mora, research analyst at BofA, the integration of the firm’s ontology architecture with FDEs represents Palantir’s “secret sauce.”
The technology is expected to support growth by boosting demand for Palantir’s operating system. Customers are increasingly turning to ready-made AI solutions instead of developing in-house systems, which accelerates adoption.
Additionally, the AI platform enhances productivity by allowing engineers to focus on complex challenges while automating routine tasks. BofA also observed that agentic AI enables the creation of new use cases, further expanding commercial opportunities.
Bank of America projects Palantir’s commercial sales could surpass $10 billion by 2030, with revenue growth expected at 41% in 2026 and 39% in 2027. The firm believes Palantir merits a premium valuation due to its near-term expansion and long-term profitability outlook.
The company has also advanced its defense sector presence. In September, the U.K. Ministry of Defence signed a contract worth up to £750 million to integrate Palantir’s AI systems into its armed forces.
The agreement will support military planning, targeting, and battlefield awareness across naval, land, and missile systems. This partnership builds on NATO’s adoption of Palantir’s Maven Smart System, reinforcing the company’s position as a key player in AI-driven defense technology.
Also Read: Why Should You Buy Palantir Stock Right Now?
