Palantir (NASDAQ: PLTR) saw its stock prices increase by roughly 8% on Thursday, and investors appear to be thankful to Donald Trump. The president recently unveiled the framework for his first significant initiative, a new trade agreement with the UK, marking his first major action since implementing broad tariffs back in April.
It didn’t take long for the market to make connections here. The agreement mentions efforts to “address the loophole” in the UK’s procurement market and enhance the competitiveness of US companies. In simpler terms, this could mean it will become easier for a company such as Palantir to secure government contracts in the UK.
This potential for international growth comes at a pivotal moment. Palantir’s revenue report for the first quarter of 2025 already showcases strong momentum, with CEO Alex Karp noting that results have surpassed “many of our greatest expectations.”
Nonetheless, skepticism still lingers in the market. Despite promising reports, many stocks, including those of Palantir, saw declines post-revenue announcement, as investors grappled with the company’s high valuation and debated whether the growth was worth the price tag.
While it’s clear that PLTR is not cheap, Dhierin Bechai believes the stock remains a sound investment. “Although PLTR stocks are oversold, the growth potential in data analytics and defense technology presents a speculative opportunity for forward-thinking investors,” he explains, positioning himself among the top 2% of stock analysts on Tipranks.
Bechai elaborates on how nearly everyone, from government entities to commercial clients, is eager to optimize operations and lower expenses. He argues that Palantir is particularly well-placed to capitalize on this trend, especially with increasing defense budgets in the US and Europe given the geopolitical climate.
Bechai acknowledges that traditional metrics may not scream “value” when it comes to Palantir’s stock. However, he insists that the company’s software is mission-critical, enhancing safety and efficiency, which he believes will eventually be rewarding for long-term investors.
“I think Palantir is costly, but for very good reasons,” he concludes, urging a buy on PLTR stock.
On Wall Street, the sentiment aligns with the view that PLTR stocks come with a hefty price tag. However, in contrast to Bechai, most analysts don’t see the current price as justified. The consensus rating is neutral, with three buy recommendations, 11 holds, and four sell ratings. The average price target sits at $98.56, indicating a potential downside of 17% over the next year.
