D.A. Davidson analyst upgrades Palantir, cites AI platform as key differentiator

Gil Luria, head of technology research at D.A. Davidson, has elevated his assessment of Palantir Technologies, describing the software firm as potentially the best company in the world. In a recent interview with Schwab Network, Luria stated that Palantir is at least the best software company, citing its unique ontology-based decision-making framework and its agnostic artificial intelligence platform as critical competitive advantages.

Luria raised his price target for Palantir to $175 per share, implying a 42 per cent upside from the current trading level of $123. This adjustment follows the company’s first-quarter financial results, which reported revenue growth of 85 per cent to $1.6 billion. The firm also increased its full-year guidance for 2026, now anticipating 71 per cent revenue growth, up from previous estimates of 56 per cent for 2025.

The analyst highlighted Palantir’s software architecture, which utilises an ontology to connect data to real-world assets and processes. This structure creates a single source of truth for organisations, allowing for easier insight generation and workflow automation. Unlike competitors that focus on proprietary models, Palantir’s Artificial Intelligence Platform (AIP) acts as an agnostic orchestration tool, enabling customers to apply various AI models to their data.

Luria noted the growing importance of this agnostic approach following a recent US government directive that forced Anthropic to temporarily suspend access to its Fable model. He argued that Palantir’s ability to swap in alternative models, such as those from OpenAI or open-source providers, positions it favourably as the market navigates regulatory and supply chain uncertainties.

Palantir’s financial performance has drawn further praise from independent research firms. Dresner Advisory Services and Forrester Research have both ranked the company as a leader in AI decisioning platforms and agentic AI. CEO Alex Karp described the company’s financial strength as unprecedented for a software firm of its scale, noting that earnings per diluted share rose 153 per cent to $0.33 in the first quarter.

Despite the bullish outlook, Palantir’s valuation remains elevated at 128 times earnings. However, Luria and other analysts point to the company’s consistent ability to beat consensus earnings estimates by an average of 15 per cent over the last six quarters. Wall Street’s median price target stands at $200 per share, suggesting a 62 per cent upside, while earnings are expected to grow at 56 per cent annually through 2027.