BofA Securities analysts increased their price target for Palantir Technologies (NYSE:PLTR) from $55 to $75, maintaining their Buy rating. The upgrade reflects expectations of accelerated growth in the U.S. and a strengthening competitive position.

Palantir’s penetration in both government and commercial sectors was described as being in the early stages, with expanding use cases and enhanced interoperability driving further adoption and upselling opportunities. The analysts highlighted the company’s ability to operationalize generative AI through its complex Ontology, addressing challenges in security, governance, and data robustness. This positions Palantir as a key player in enabling businesses to enhance margins through software and AI rather than relying solely on fixed asset scale.

Software has become increasingly critical in industrial production, representing 17% of U.S. nonresidential private fixed investments in 2023, compared to 11% in 2005. This trend supports Palantir’s long-term growth prospects as organizations prioritize automation, real-time data analysis, and process control.

BofA also raised its three-year commercial growth forecast for Palantir to 34% from 32%, citing the company’s expanding commercial customer base, partnerships, and distribution channels.