JPMorgan initiated coverage of Palantir Technologies with an overweight rating and a $262 price target. The bank says large businesses are increasingly embracing artificial intelligence, which is likely to lift the stock. Palantir reports third-quarter results on Nov. 2.
JPMorgan initiated research coverage of Palantir with an overweight rating and a $262 12-month price target. The target sits 33% above the Wednesday close. The bank expects the software stock to rally as large businesses increasingly embrace artificial intelligence to boost returns.
Analyst points to AI returns for customers
Analyst Brian Essex said in a Thursday note to clients that businesses are increasingly adopting Palantir technology to get better returns on their AI investments. He wrote that Palantir is already delivering ROI by using its platform to transform customers' business operations, and that growth is accelerating.
Essex also noted that Palantir focuses on AI sovereignty, which gives clients control of the entire artificial intelligence stack. As a result, the products are popular with large enterprises and government clients, which should support future market share growth, he said. According to JPMorgan: "Demand for AI Sovereignty is accelerating," the bank said.
Wall Street ratings and recent performance
The call matches the rest of Wall Street, where 26 of 35 analysts rate Palantir a buy or strong buy, according to LSEG data. Palantir shares have trailed the S&P 500 so far in 2026, but they have soared 59% in the past three months, according to FactSet data.
Palantir is scheduled to report third-quarter results post-market on Monday Nov. 2.
Source: CNBC
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