TLDR
- Palantir shares advanced 15% during the trading week, reaching $157.16 by Friday’s close, marking the best weekly gain since August
- Military action against Iran intensified investor focus on defense technology companies, positioning Palantir as a primary beneficiary
- Government contracts generate approximately 60% of Palantir’s total revenue, with its technology deployed during Iran military operations
- Rosenblatt Securities increased their price target to $200; Piper Sandler maintains a $230 valuation
- Pentagon’s decision to blacklist Anthropic created uncertainty around Palantir’s AI collaborations, though analysts suggest viable replacements
Palantir ($PLTR) delivered exceptional performance during a challenging week for equity markets. Shares settled at $157.16 on Friday, gaining approximately 2.9% during the session and posting a 15% weekly advance — the company’s most impressive weekly showing since August.
Palantir Technologies Inc., PLTR
Market indices headed in a different direction. The Nasdaq Composite dropped 1.2% during the same period, pressured by weakness in Apple, Google, and Micron. Crude oil prices jumped higher, while February employment data revealed unexpected job losses across the U.S. economy.
Palantir attracted buying interest as attention turned to U.S. military strikes against Iran. Government revenue streams represent approximately 60% of Palantir’s total business, with the company expanding its relationships with military and intelligence organizations.
The Maven Smart System from Palantir delivers AI-powered capabilities including weapons targeting functions to U.S. armed forces, with reports confirming these systems played a role during Iran operations. During the previous year, Palantir secured a $10 billion Army contract.
President Trump has signaled ongoing military engagement, sustaining defense sector investor enthusiasm for Palantir throughout the trading week.
Analyst Targets Move Higher
Rosenblatt Securities maintained its buy recommendation on PLTR while lifting its price objective to $200 from $150. The research firm stated that Middle East military activity creates favorable conditions for Palantir’s government business pipeline, with potential for additional large-scale Army contracts.
Piper Sandler confirmed its overweight rating while keeping its $230 price objective unchanged. Citigroup carries a $260 target alongside a buy rating. The analyst consensus tracked by MarketBeat shows “Moderate Buy” with an average target of $192.68.
UBS shifted PLTR from neutral to buy during the week, adjusting its target to $150.
Palantir’s latest quarterly results, delivered February 2, exceeded Wall Street expectations. The company reported $0.25 EPS compared to the $0.23 consensus estimate and delivered $1.41 billion in revenue, representing 70% year-over-year growth. Net margin reached 36.31%.
Anthropic Blacklisting Raises Questions
A complicating factor emerged when the Pentagon designated Anthropic as a blacklisted government supplier. Negotiations between both parties broke down over disagreements regarding AI model usage in autonomous weapons systems and domestic surveillance applications.
Palantir, Amazon Web Services, and Anthropic formed a partnership in November 2024 to deploy Claude models within defense and intelligence agencies. Anthropic had secured a $200 million Defense Department contract and became the first AI laboratory to integrate models on classified networks.
Palantir has remained silent regarding its plans for the Anthropic collaboration. Rosenblatt Securities observed that “adequate alternatives” to Claude models exist in the market. Piper Sandler expressed greater concern, suggesting that finding a replacement will consume time that could otherwise advance growth initiatives.
Anthropic CEO Dario Amodei announced in a Thursday blog post that he has “no choice” but to pursue legal action against the blacklisting decision.
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 registers at $156.11. Market capitalization stands at approximately $375.9 billion, with a P/E ratio of 249.
