Palantir (PLTR) shares are inching lower on January 8 following a multi-session rally on speculation that it was involved in the US military’s recent attack on Venezuela.
According to Arvind Ramnani, senior analyst at Truist, long-term investors should consider purchasing PLTR in this pullback as it is the “best-in-class” artificial intelligence (AI) asset for 2026.
Ramnani’s bullish view is particularly significant given that Palantir stock is already up about 180% from its 52-week low.
In his latest research note, Ramnani admitted that PLTR is an expensive stock, but said the company’s strong financial profile justifies a premium multiple.
Palantir ranks exceptionally high on the “Rule of 40” metric, with a reported score of over 100 at the time of its third-quarter earnings release.
“We continue to view PLTR stock as a buy, given its significant opportunity to drive AI adoption by governments and businesses,” the Truist analyst wrote.
Its $223 price target suggests Palantir Technologies could rise another 30% from here over the next 12 months.
Ramnani expects AI adoption to accelerate this year and believes Palantir stock is “ideally positioned” to benefit from it.
In his report, the Truist analyst also cited “international expansion” as a potential driver of future growth.
“Now operating with a free cash flow (FCF) margin profile of over 40%, we see potential for PLTR to significantly increase long-term returns on equity.”
Famed investor Jim Cramer echoed the optimism in a recent segment of CNBC also. According to him, Palantir has “radically” changed all of its client companies (for the better) and that’s a sign of a truly phenomenal business.
According to Barchart, bullish options data also currently suggests that Palantir will trade above $200 in the next three months.
While they are not as bullish as Truist Securities, other Wall Street firms have not thrown in the towel on PLTR stock either.
While the consensus rating on Palantir stock is only at “Hold,” the average target of around $193 indicates a potential upside of around 10% from here.