Key Takeaways
- PLTR shares gained 15% over the week, finishing at $157.16—the strongest weekly gain since August
- U.S. military operations in Iran sparked heightened demand for defense technology stocks, positioning Palantir as a primary winner
- Approximately 60% of Palantir’s total revenue derives from government contracts, with its systems deployed during recent Iran missions
- Rosenblatt Securities upgraded their target to $200; Piper Sandler maintains a $230 projection
- Pentagon’s blacklisting of Anthropic created uncertainty around Palantir’s AI collaborations, though analysts believe substitutes are available
While broader markets faced headwinds, Palantir ($PLTR) delivered an exceptional weekly performance. Shares ended Friday’s session at $157.16, climbing roughly 2.9% for the day and posting a 15% weekly advance—the company’s most impressive week since last August.
Palantir Technologies Inc., PLTR
The general market trended downward during the same period. The Nasdaq Composite dropped 1.2% weekly, pressured by declines in Apple, Google, and Micron. Meanwhile, oil prices surged, and February’s employment data revealed unexpected job losses in the U.S. economy.
Palantir bucked this trend as market participants zeroed in on escalating U.S.-Iran tensions. Government-related business represents approximately 60% of the company’s total revenue stream, with expanding relationships across military and intelligence organizations.
The company’s Maven Smart System delivers artificial intelligence functionality including weapons targeting solutions to American armed forces, with reports indicating these technologies played a role in recent Iran-related operations. A substantial $10 billion Army contract signed last year underscores this growing relationship.
President Trump’s statements suggest the military engagement won’t conclude rapidly, prompting defense-sector investors to maintain buying pressure on Palantir throughout the trading week.
Wall Street Target Prices Climb Higher
Rosenblatt Securities affirmed its buy recommendation on PLTR while elevating its price objective to $200 from $150. The research firm indicated that Middle East tensions “bodes well” for Palantir’s government contract pipeline, with potential for additional large-scale military agreements.
Piper Sandler reaffirmed an overweight stance while keeping its $230 price objective unchanged. Citigroup holds a buy rating with a $260 target. According to MarketBeat’s analyst consensus, the stock carries a “Moderate Buy” rating with an average target of $192.68.
UBS shifted PLTR from neutral to buy during the week, although it reduced its target to $150.
The company’s latest quarterly results, disclosed February 2, exceeded Wall Street forecasts. Palantir delivered $0.25 earnings per share against a $0.23 consensus estimate and generated $1.41 billion in revenue, representing 70% year-over-year growth. The company achieved a 36.31% net margin.
Pentagon’s Anthropic Ban Creates Uncertainty
A challenge emerged this week when the Pentagon placed Anthropic on its supplier blacklist. The parties couldn’t reach consensus regarding AI model usage concerning autonomous weaponry and domestic monitoring programs.
A November 2024 partnership had united Palantir, Amazon Web Services, and Anthropic to deliver Claude AI models to defense and intelligence organizations. Anthropic had previously secured a $200 million Defense Department agreement and became the initial AI company to integrate models into classified networks.
Palantir hasn’t issued public statements regarding its strategy for the Anthropic collaboration. Rosenblatt observed that “adequate alternatives” to Claude models exist. Piper Sandler expressed more reservation, suggesting that finding an Anthropic replacement will consume time better spent pursuing expansion opportunities.
Anthropic CEO Dario Amodei announced Thursday in a blog statement that he has “no choice” but to legally contest the blacklisting decision.
The stock received additional momentum from a wider software sector recovery. The iShares Expanded Tech-Software Sector ETF jumped nearly 8% for the week. CrowdStrike, ServiceNow, and AppLovin each posted gains exceeding 15%.
Technically, the company’s 50-day moving average sits at $156.11. PLTR’s market capitalization stands near $375.9 billion, trading at a P/E ratio of 249.
