Truist Maintains Palantir at Buy, $223.00 Price Target

Truist maintained its Buy rating and $223.00 price target on Palantir after speaking with 20+ customers and CEO Alex Karp at AIPCon 10.

We attended Palantir’s AIPCon 10 in person, where we spoke with 20+ customers as well as CEO Alex Karp.

Our key takeaway was renewed conviction that Palantir’s Ontology serves as a critical backbone for enterprise AI adoption.

On their own, LLMs are largely limited to powering AI chat interfaces or narrow agents using public or siloed internal data.

In contrast, Palantir’s Ontology creates a dynamic digital twin of the enterprise, linking data across the organization.

This unified layer enables more effective AI deployment by allowing enterprises to fully leverage institutional knowledge, supports agents that operate across systems, and enforces governance and guardrails on data access.

In our conversations with 20+ customers, feedback consistently pointed to Palantir having structural advantages vs. alternative solutions like Databricks (private), Snowflake (SNOW, Buy, Jump), C3 AI (AI, NR), and others.

In our view, Palantir’s competitive moat is deeper than most investors appreciate.

One of the key differentiations is that these clients view its competitors as having robust data warehousing, BI, and analytics; however, they chose Palantir as it takes the next step of turning data into decisions and has robust workflow capabilities.

Customers also pointed to the stickiness of the product: Palantir sits on top of multiple ERP systems across an organization’s operations.

While all customers who we spoke with expressed high levels of satisfaction with Palantir’s solutions, a subset of customers pointed to high costs and FDE capabilities that are difficult to replicate within their own organizations.

However, even with these high costs, they are expanding their Palantir relationships given the value that they are getting from its platforms.

In particular, large organizations see significant value from Palantir, while some of the smaller organizations say cost is a major factor for them.

Most of the 20+ customers we spoke with point to a significant long-term spend trajectory. The customers universally expect to spend 3x-7x more with Palantir over the medium term.

This growth is expected to be driven by multiple factors: expansion into new business areas, higher levels of consumption, additional module adoption, and price increases; and in our view, Palantir has substantial pricing power.

One notable gap in the TAM story is that mid-market clients seem to see value in the product, but struggle to justify the cost.

This could be a significant area of opportunity in our view, though we continue to believe Palantir is constrained from meeting all of its demand by its supply of talent, based on our discussion at its offices.

Google Cloud partnership expands Palantir’s distribution and deepens data and Gemini integrations. Palantir (PLTR, Buy) announced a multi-tiered partnership with Google Cloud (GOOGL, Buy, Squali) that: 1) makes Palantir available on the Google Cloud Marketplace, 2) includes integration between Google’s BigQuery & Knowledge Catalog and Palantir’s Foundry & Ontology, and 3) enables deeper connectivity between Gemini and AIP.

In one customer example, Eaton Corporation (ETN, NR), a $160B+ power management company, has noted faster quote generation, improved engineering precision, and stronger customer responsiveness by embedding Gemini into its Foundry Ontology and AIP.

We see this tighter partnership with GCP expanding Palantir’s distribution and facilitating more seamless data flow for shared customers across the two platforms.

We believe this partnership could become more significant over time, with a leading AI model provider more tightly integrating with a leading orchestration layer provider, but we expect Palantir to maintain its model-agnostic approach.

Google Cloud VP of Applied AI & Platform Ecosystem Satish Thomas: “Our partnership with Palantir helps turn raw data into AI-driven insights that inform real-world, operational decisions.

By uniting BigQuery and Gemini with Palantir’s Foundry and AIP, we’re giving joint customers a secure, unified foundation to run their most complex, high-stakes workflows at scale.”

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