Key Takeaways
- PLTR shares climbed 15% during the week, ending Friday at $157.16 in the strongest weekly showing since August
- Recent U.S. military operations in Iran triggered increased investor appetite for defense technology companies like Palantir
- Approximately 60% of Palantir’s total revenue comes from government contracts, with its technology deployed in Iranian operations
- Rosenblatt Securities increased its price target to $200 while Piper Sandler maintains a $230 forecast
- Pentagon’s decision to blacklist Anthropic has created uncertainty around Palantir’s AI collaborations, though analysts note viable replacements
While broader markets faced headwinds this week, Palantir ($PLTR) delivered exceptional performance. Shares finished Friday trading at $157.16, marking a 2.9% single-day gain and an impressive 15% weekly advance — the company’s best week since last August.
Palantir Technologies Inc., PLTR
The rest of the technology sector told a different story. The Nasdaq composite declined 1.2% for the week amid weakness in major names including Apple, Google, and Micron. Crude oil prices jumped higher while February employment data revealed an unexpected contraction in U.S. jobs.
Palantir shares advanced as market participants zeroed in on escalating Middle East tensions following U.S. strikes on Iranian targets. The data analytics firm derives approximately 60% of its total revenue from government clients and has steadily expanded its footprint across military and intelligence operations.
The company’s Maven Smart System delivers advanced AI functionality to armed forces, including targeting capabilities for weapons systems. Reports indicate these platforms played a role in recent Iranian military operations. In a major milestone last year, Palantir’s secured a $10 billion Army contract.
With President Trump offering no signals of de-escalation in the conflict, defense-oriented investors continued accumulating PLTR shares throughout the trading week.
Wall Street Raises Price Forecasts
Rosenblatt Securities reaffirmed its buy recommendation on PLTR while lifting its price objective to $200 from a previous $150. The firm indicated that Middle East tensions create favorable conditions for Palantir’s government business pipeline and could lead to additional large-scale military contracts similar to the Army deal.
Piper Sandler maintained its overweight stance with a $230 target intact. Citigroup holds a buy rating with a $260 price objective. According to MarketBeat data, the analyst consensus reflects a “Moderate Buy” rating with an average target of $192.68.
Earlier this week, UBS shifted its stance from neutral to buy, although the firm reduced its target to $150.
Palantir’s latest quarterly results, disclosed on February 2, exceeded Wall Street expectations. The company delivered earnings of $0.25 per share against a $0.23 estimate and generated $1.41 billion in revenue, representing 70% year-over-year growth. Net profit margin reached 36.31%.
Pentagon’s Anthropic Ban Creates Uncertainty
A potential complication emerged when the Pentagon placed Anthropic on its supplier blacklist. The breakdown occurred after negotiations stalled regarding acceptable use cases for AI systems in autonomous weaponry and domestic surveillance applications.
A November 2024 partnership united Palantir, Amazon Web Services, and Anthropic to deploy Claude AI models across defense and intelligence organizations. Anthropic had previously secured a $200 million Defense Department agreement and became the pioneering AI company to integrate its models into classified government networks.
Palantir hasn’t issued public statements regarding its plans for the Anthropic collaboration. Rosenblatt analysts suggested “adequate alternatives” exist to Claude models. Piper Sandler expressed more reservation, noting that finding a replacement will consume time that could otherwise support expansion initiatives.
Anthropic’s chief executive Dario Amodei announced Thursday in a blog post that he will pursue legal action to contest the blacklisting.
The stock received additional support from a software sector rally. The iShares Expanded Tech-Software Sector ETF jumped nearly 8% for the week. CrowdStrike, ServiceNow, and AppLovin each posted gains exceeding 15%.
The company’s 50-day moving average currently sits at $156.11. Palantir’s market capitalization stands at approximately $375.9 billion with a price-to-earnings ratio of 249.
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