Key Highlights
- Shares of Palantir finished the week at $157.16, marking a 15% weekly gain—the strongest performance since August
- U.S. military operations in Iran increased investor appetite for defense technology companies, with Palantir positioned as a primary beneficiary
- Approximately 60% of Palantir’s total revenue comes from government contracts, and its systems were deployed during Iran missions
- Rosenblatt Securities lifted its price target to $200; Piper Sandler maintains a $230 objective
- Pentagon’s blacklisting of Anthropic created uncertainty around Palantir’s AI collaboration, though analysts believe substitutes are available
Shares of Palantir ($PLTR) delivered exceptional returns this week even as broader markets faced headwinds. The stock ended Friday’s session at $157.16, climbing roughly 2.9% for the day and posting a remarkable 15% weekly advance—marking its most impressive week since August.
Palantir Technologies Inc., PLTR
Meanwhile, the wider market trended downward. The Nasdaq composite declined 1.2% over the same period, pressured by weakness in Apple, Google, and Micron. Crude oil prices jumped, while February’s employment data revealed an unexpected contraction in U.S. payrolls.
Palantir shares rallied as market participants responded to U.S. military strikes against Iranian targets. Government-related business represents approximately 60% of the company’s total revenue stream, and Palantir has been expanding its relationships with defense and intelligence organizations.
The company’s Maven Smart System delivers artificial intelligence functionality including targeting assistance for weapons systems to American armed forces, and these platforms were reportedly utilized throughout the Iran operations. In 2024, Palantir secured a $10 billion agreement with the U.S. Army.
President Trump has offered no signals that the confrontation will conclude soon, which maintained buying pressure among defense-oriented investors throughout the week.
Wall Street Increases Price Forecasts
Rosenblatt Securities maintained its buy recommendation on PLTR while elevating its price objective to $200 from $150. The firm stated that escalating Middle East tensions “bodes well” for Palantir’s government contract pipeline and suggested additional large-scale Army contracts may materialize.
Piper Sandler confirmed its overweight stance and kept its $230 price forecast unchanged. Citigroup holds a $260 target alongside a buy rating. The analyst consensus tracked by MarketBeat registers as “Moderate Buy” with a mean price target of $192.68.
UBS elevated PLTR from neutral to buy during the week, although it reduced its target to $150.
The company’s latest quarterly results, released February 2, exceeded Wall Street estimates. Palantir delivered $0.25 earnings per share against the $0.23 consensus forecast and reported $1.41 billion in sales, representing 70% year-over-year growth. Net profit margin reached 36.31%.
Pentagon Blacklists Anthropic, Creating Uncertainty
One challenge emerging this week involved the Pentagon’s decision to blacklist Anthropic as an approved government vendor. The parties were unable to negotiate terms regarding AI model deployment for autonomous weapons systems and domestic monitoring activities.
Palantir, Amazon Web Services, and Anthropic had announced a collaboration in November 2024 to deliver Claude AI models to military and intelligence organizations. Anthropic had also obtained a $200 million Defense Department award and became the first AI company to integrate its models within classified government networks.
Palantir has not issued public commentary regarding its plans for the Anthropic collaboration. Rosenblatt Securities observed that “adequate alternatives” to Claude models exist. Piper Sandler adopted a more measured view, noting that substituting Anthropic will require time that could otherwise be devoted to expansion initiatives.
Anthropic CEO Dario Amodei stated in a Thursday blog post that he has “no choice” but to pursue legal action challenging the blacklisting decision.
The stock received additional momentum from a wider software sector recovery. The iShares Expanded Tech-Software Sector ETF jumped nearly 8% during the week. CrowdStrike, ServiceNow, and AppLovin each recorded 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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