Palantir Technologies NASDAQ:PLTR gained 4% on Thursday after DA Davidson upgraded the software company to Buy from Neutral and increased its price target to $175 from $165, citing stronger competitive positioning as enterprise adoption of artificial intelligence expands.
DA Davidson analyst Gil Luria said Palantir has widened its competitive edge as more businesses recognize the importance of an orchestration layer that allows AI applications to operate across multiple models. The firm believes this capability is becoming increasingly valuable as enterprises seek flexibility while deploying generative AI.
The brokerage pointed to recent disruptions involving Anthropic, whose AI models faced U.S. government restrictions, arguing the episode highlighted the risks of building applications directly on a single foundation model. According to DA Davidson, companies using Palantir's software can switch between underlying AI models with limited disruption, helping reduce operational risk.
The upgrade reflects the firm's view that demand for AI orchestration software could continue to grow as enterprises prioritize reliability and adaptability. DA Davidson said those trends may strengthen Palantir's position in the evolving AI software market and support additional long-term growth.