This Wall Street Analyst Sees 30% Upside in Palantir. Is It Time to Buy the Stock?

DA Davidson analyst Gil Luria upgraded Palantir to buy with a $175 price target, representing 30% upside from current levels. The call comes despite PLTR trading at a price-to-sales ratio of 45.5, among the highest valuations in enterprise software.

Luria's thesis centers on Palantir's AI orchestration platform, which is fueling explosive commercial expansion. U.S. commercial revenue surged 133% year-over-year, while net dollar retention hit 150%, indicating existing customers are sharply increasing their spending.

The premium valuation reflects investor conviction that Palantir's AI platform positions it to capture outsize share of enterprise AI budgets. The 150% net dollar retention suggests the company is landing customers who rapidly expand usage once deployed, a key indicator of product stickiness in enterprise software.

DA Davidson's upgrade adds to growing Wall Street momentum for PLTR, which has seen increasing analyst attention as AI infrastructure spending accelerates across corporate America.