TLDR
- UBS raises Palantir $PLTR to Buy rating with $180 target following approximately 35% decline from peak levels
- Rosenblatt starts coverage with Buy recommendation and $150 target, highlighting “attractive entry point” opportunity
- Q4 results exceeded expectations: EPS $0.25 vs $0.23 forecast, revenue $1.41B vs $1.34B consensus, representing 70% YoY growth
- Company insiders offloaded more than 1 million shares valued at roughly $142M during the quarter, reducing insider stake to approximately 9.23%
- Street consensus stands at “Moderate Buy” with mean price target of $191.05, suggesting potential upside of ~38.9%
Shares of Palantir $PLTR advanced 1.3% Thursday, reaching $135.94 following UBS’s upgrade from Neutral to Buy accompanied by 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 indicated that proprietary channel research revealed a “very strong demand backdrop,” implying robust customer engagement continues. UBS forecasts approximately 70% revenue expansion in 2026, while maintaining margins in the mid-50% territory.
The stock touched an intraday high of $137.51. Trading volume registered around 44.5 million shares, roughly 13% under typical daily activity.
Rosenblatt Adds Another Bullish Voice
Also Thursday, Rosenblatt analyst John McPeake launched coverage with a Buy recommendation alongside 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 its growth momentum and capture margin expansion benefits as revenue continues scaling. The firm’s gross profit margin currently stands at 82%, while revenue climbed 56% over the trailing twelve-month period.
These twin upgrades follow recent optimistic assessments from Mizuho, Freedom Capital, and Robert W. Baird. The prevailing Wall Street consensus registers as “Moderate Buy,” derived from 14 Buy recommendations, 4 Hold ratings, and 2 Sell opinions, yielding an average price objective of $191.05.
Strong Q4 Performance, Though Valuation Questions Persist
Palantir unveiled Q4 results on February 2nd. Earnings per share reached $0.25, surpassing the $0.23 projection. Revenue totaled $1.41 billion, exceeding the $1.34 billion estimate, marking a 70% year-over-year increase.
Return on equity measured 23.81% while net margin registered 36.31%. Wall Street projects full-year EPS of $0.31.
Notwithstanding the impressive figures, the stock trades at a P/E ratio near 216. Such elevated valuation multiples provide minimal cushion for execution missteps.
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 holdings, hedge funds and institutional investors control 45.65% of outstanding shares. Various smaller investment firms expanded positions in recent reporting periods.
One notable concern: company insiders divested over 1.05 million shares valued at approximately $142 million during the latest quarter. Insider Ryan Taylor offloaded 19,988 shares on February 20th at $133.72 per share. Insider Stephen Cohen sold 327,088 shares that same day, trimming his stake by 99.82%.
Total insider ownership currently represents 9.23% of shares outstanding.
On a more positive note, DISA awarded Palantir’s PFCS Forward provisional Impact Level 6 authorization, enabling deployment across the most classified Department of Defense cloud infrastructure. Additionally, Rackspace received designation as a dedicated implementation partner for Palantir’s Foundry and AIP platforms.
PLTR closed Thursday’s session at $135.94.
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