TLDR
- UBS shifted Palantir $PLTR to Buy from Neutral, setting a $180 price objective following approximately 35% decline from peak levels
- Rosenblatt launched coverage with Buy rating and $150 target, highlighting PLTR as an “attractive entry point”
- Fourth quarter results exceeded forecasts: EPS $0.25 versus $0.23 consensus, revenue $1.41B versus $1.34B forecast, climbing 70% annually
- Company insiders offloaded more than 1 million shares valued at roughly $142M during recent quarter, dropping insider stake to approximately 9.23%
- Wall Street consensus stands at “Moderate Buy” with mean price objective of $191.05, suggesting roughly 38.9% potential upside
Palantir $PLTR advanced 1.3% Thursday, reaching $135.94 following UBS’s decision to upgrade the shares from Neutral to Buy while establishing a $180 price objective.
Palantir Technologies Inc., PLTR
UBS analyst Karl Keirstead encouraged investors to take advantage of the opportunity following the stock’s approximately 35% retreat from recent peak levels. He characterized Palantir as a “premier growth story” within the software sector and noted the company operates “at the nexus of the two most powerful spending trends — AI and Data.”
Keirstead further mentioned that channel feedback indicated a “very strong demand backdrop,” implying customer adoption continues to be robust. UBS anticipates revenue expansion of approximately 70% in 2026, while margins should remain in the mid-50% territory.
Shares reached an intraday high of $137.51. Trading volume registered around 44.5 million, roughly 13% under the typical daily average.
Rosenblatt Joins With a Fresh Buy Call
Also Thursday, Rosenblatt analyst John McPeake launched coverage with a Buy recommendation and a $150 price objective.
McPeake characterized Palantir as a “market-disrupting, uniquely positioned AI software leader.” He pointed to the stock’s 33% drop from its October peak as generating an appealing entry opportunity.
He anticipates Palantir will sustain a durable growth path and capture margin benefits as revenue expands. The company’s gross profit margin presently registers at 82%, with revenue climbing 56% over the trailing twelve months.
These dual upgrades follow recent positive assessments from Mizuho, Freedom Capital, and Robert W. Baird. Current Wall Street consensus registers at “Moderate Buy,” derived from 14 Buy recommendations, 4 Hold ratings, and 2 Sell calls, with a mean price objective of $191.05.
Q4 Beat, But Valuation Remains a Sticking Point
Palantir unveiled Q4 results on February 2nd. EPS registered at $0.25, surpassing the $0.23 forecast. Revenue reached $1.41 billion, topping the $1.34 billion consensus, and climbing 70% year-over-year.
Return on equity measured 23.81% and net margin registered at 36.31%. Analysts project full-year EPS of $0.31.
Notwithstanding the impressive figures, the stock trades at a P/E ratio around 216. Such valuation multiples provide limited cushion for any missteps in execution.
The stock’s 50-day moving average rests at $161.79, while the 200-day moving average stands at $170.49. Current market capitalization totals $324 billion.
Regarding institutional positioning, 45.65% of shares are controlled by hedge funds and institutional investors. Multiple smaller firms increased their positions in recent quarters.
One concern meriting attention: company insiders divested over 1.05 million shares valued at approximately $142 million last quarter. Insider Ryan Taylor offloaded 19,988 shares on February 20th at $133.72. Insider Stephen Cohen divested 327,088 shares that same day, decreasing his stake by 99.82%.
Insider ownership currently registers at 9.23%.
On a more positive note, DISA awarded Palantir’s PFCS Forward provisional Impact Level 6 authorization, enabling deployment in the most classified Department of Defense cloud environments. Rackspace was additionally designated a dedicated implementation partner for Palantir’s Foundry and AIP platforms.
As of Thursday’s closing bell, PLTR settled at $135.94.
