Piper Sandler: Palantir (PLTR.US) has not yet reached its growth peak. Raised target price to $210.

Piper Sandler has raised Palantir Technologies' target price from $182 to $210, while maintaining an "Overweight" rating on the stock. Analyst Clarke Jeffries stated that there is no room for error in Palantir's valuation, especially if there are any signs of growth slowdown, the impact will be more significant. However, the analyst pointed out that Palantir's future revenue certainty is extremely high, with established contract values exceeding $7 billion, plus an estimated value of around $4 billion in Indefinite Delivery/Indefinite Quantity (IDIQ) contracts; commercial orders have achieved triple-digit growth since the beginning of the year and the growth rate is continuing to accelerate; and the company has unparalleled market share opportunities in the US defense spending of $1 trillion. Therefore, Palantir has not yet reached its peak of growth and there are currently no factors to interrupt its growth momentum. The analyst believes that the defense sector is undergoing profound changes, shifting from costly large assets to flexible and low-cost strategies supported by software and unmanned systems. Jeffries stated: "We present to investors a scenario - if 0.5% of the US defense spending flows to Palantir, the overall government business of the company may increase four times, but even so, its size would only be 1/7 of Lockheed Martin's." The analyst also added that in the era of artificial intelligence, various institutions (whether federal government or commercial institutions) must adopt new ways when developing applications and data infrastructure, and Palantir is a long-term beneficiary of this trend. Jeffries further pointed out: "After significant investments in Artificial Intelligence Platforms (AIP), we believe that Palantir's commercial business is reaching a significant turning point, with the core DRIVE of this turning point being the market's demand for fast, transformative AI delivery. Management has indicated that the implied growth rate of the US commercial business in the second half of this year is 89%, and in the most recent quarter, the year-on-year growth rate of the remaining transaction value of the US commercial business reached 145%. Based on these data, we believe that Palantir's commercial business has not yet reached its growth peak."