The bank reiterated its "buy" rating on the stock and raised its price target from $180 to $215, implying another 20% upside from Friday's close at $177.57.
The "Secret Weapon": AI Frontline Deployment Engineer
Bank of America analysts, led by Marina Perez Mora, pointed to Palantir’s AI Frontline Deployment Engineer (FDE) technology as the company’s "secret weapon." The agent-based AI system was showcased at Palantir’s AIPCon 8 conference, where executives highlighted how FDEs integrate with Palantir’s ontology architecture to accelerate adoption of AI across industries.
Mora called FDE the company’s "key differentiator" from peers, noting that it could reshape how enterprises deploy AI.
How FDE Could Drive Growth
Bank of America outlined three main ways Palantir’s FDE technology could fuel expansion:
- Increased demand: Companies may prefer Palantir’s operating system rather than building their own, especially if they want to fast-track AI agent adoption.
- Higher productivity: By embedding FDEs into workflows, Palantir can scale faster, freeing engineers to tackle more complex problems while boosting efficiency.
- New use cases: The technology opens the door to fresh applications, enabling Palantir and its clients to continuously expand AI-driven solutions.
The bank estimates Palantir’s commercial sales could surpass $10 billion by 2030, with annual growth projected at 41% in 2026 and 39% in 2027.
Why Palantir Gets a Premium
Mora argued that Palantir deserves a valuation premium compared to traditional software firms. "We believe Palantir deserves a premium to traditional short-term valuation metrics, factoring in accelerating near-term growth, sustainable long-term growth opportunities, and strong profitability," she wrote.
That bullish stance reflects not only the FDE rollout but also Palantir’s track record of profitability, its sticky government contracts, and a loyal base of retail investors who have helped fuel the stock’s momentum.
A Breakout Year for Palantir
Palantir’s 2025 surge has been driven by a combination of strong earnings reports, expanding U.S. government partnerships, and growing enthusiasm for its AI platform. The company has positioned itself as a leader in applied AI, with its technology increasingly used in defense, healthcare, and financial services.
While skeptics argue the stock’s valuation looks stretched, Bank of America’s call suggests Wall Street sees more room to run—particularly if Palantir can continue converting its AI innovations into commercial revenue growth.
The Bottom Line
Palantir's stock has already delivered eye-popping gains this year, but Bank of America believes its AI Frontline Deployment Engineer technology could keep the rally alive. With a raised price target of $215 and expectations of double-digit growth through the decade, the bank sees Palantir as one of the few AI names with both near-term momentum and long-term staying power.
For investors, the message is clear: Palantir's "secret weapon" may just be its ticket to the next leg higher.