Palantir Stock Has 20% Upside on ‘Secret Sauce’: Bank of America

Palantir’s big rally might have room to run.

Bank of America said it believes shares of the AI company beloved by retail traders have a lot more upside. Growth will be sustained by one secret weapon in particular: AI forward-deployed engineers, the bank said, referring to Palantir’s agentic AI technology.

In a note to clients, BofA reiterated its “Buy” rating on Palantir and lifted its price target for the stock from $180 to $215 a share, a gain. of 23% from Friday’s price around midday.

It pointed in particular to Palantir’s demonstration of its AI FDE at its annual AIPCon 8 conference, and said that it met with Akshay Krishnaswamy, Palantir’s chief architect, for a product demo.

One of the main takeaways was that FDEs were a “key differentiator” for Palantir from other companies in the space, according to Marina Perez Mora, a research analyst at BofA.

“Post AIPCon8 we highlighted how the Ontology architecture and the FDEs go-to-market strategy continued to be Palantir’s secret sauce,” Mora wrote.

Palantir’s agentic AI could help rev up growth on several fronts, Mora said:

• Increased demand. The tech could influence customers to purchase Palantir’s operating system as opposed to building their own. That’s because companies may be looking to “accelerate the implementation of AI agents” in their own operations.
• Increased productivity. “By successfully implementing these breakthrough capabilities inhouse, the company will benefit from increased demand, scalability and empowered engineers that can focus on the most complex problems,” Mora said.
• New use cases. “Additionally, these AI FDEs will allow Palantir engineers and the customers themselves to continue to create new use cases,” Mora added.

Those trends could help lift Palantir’s commercial sales past $10 billion by the end of 2030, Bank of America estimated. Sales could also grow 41% year-over-year by the end of 2026, followed by 39% year-over-year growth in 2027, Mora said.

“In our view, PLTR deserves a premium valuation on near term traditional metrics. This premium should factor in the accelerating near-term growth, the sustained long-term growth opportunities, and the strong profitability,” she continued.

It’s already been a huge run for Palantir, with shares of the firm up 133% year-to-date. That rally has been brought on by a confluence of factors, including strong earnings, the firm’s loyal army of retail investors, and its myriad deals with the US government.