Palantir Technologies (PLTR +0.05%) rewarded shareholders with triple-digit returns in each year from 2023 to 2025, with total gains topping 2,600% during that three-year period. But the stock has traded sideways in 2026 despite encouraging financial results, primarily because investors are less confident in richly valued software names.

Wall Street thinks Palantir is modestly undervalued. Among 36 analysts, the median 12-month target price is $205 per share. That implies 10% upside from its current share price of $185.

But I think Palantir is headed to $222 per share, implying 20% upside. Here’s my logic.

Image source: The Motley Fool.

Palantir analytics platforms are the connective tissue that links data to decisions

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