TLDR
- Freedom Capital Markets upgraded Palantir (PLTR) stock from Sell to Buy with $170 price target following strong Q4 results
- Q4 earnings hit $0.25 per share versus $0.23 consensus while revenue surged 70% year-over-year to $1.407 billion
- Commercial segment exploded 137% to $507 million and government segment grew 66% to $570 million
- Analyst rejects concerns about AI agents threatening Palantir’s business, citing Artificial Intelligence Platform strength
- PLTR shares dropped 6.7% February 12 after Michael Burry published 10,000-page critical thesis on AI sector
Freedom Capital Markets delivered a rare double upgrade for Palantir Technologies Friday, lifting the stock from Sell straight to Buy. Analyst Almas Almaganbetov issued a $170 price target, suggesting 29.4% upside potential from current trading levels.
Palantir Technologies Inc., PLTR
The upgrade came on the heels of stellar Q4 performance that exceeded all estimates. Earnings per share landed at $0.25, beating the Street’s $0.23 expectation. Revenue climbed to $1.407 billion, well above the $1.34 billion forecast and up 70% from the prior year.
Both major revenue segments delivered impressive growth. Commercial revenue skyrocketed 137% year-over-year to $507 million. Government revenue wasn’t far behind, rising 66% to $570 million. The results demonstrate broad-based demand across Palantir’s customer base.
AIP Platform Powers Performance
Almaganbetov pointed to the Artificial Intelligence Platform as the catalyst behind Palantir’s acceleration. AIP has been driving U.S. market expansion by turning pilot programs into substantial contracts. The platform’s success suggests demand for AI infrastructure is structural, not temporary.
The analyst increased revenue projections for fiscal 2026 and 2027. He explicitly stated that emerging AI agents don’t pose a long-term risk to Palantir’s business model. Company guidance for Q1 and full-year 2026 topped consensus forecasts, showing management’s confidence in continued momentum.
Profitability metrics improved during the quarter. Both gross and operating margins expanded beyond Wall Street expectations. International operations remain a weak spot due to structural barriers in adoption and procurement processes.
Divided Street Opinion
Not all analysts share the bullish outlook. D.A. Davidson’s Gil Luria kept his Hold rating, pointing to valuation concerns at current price levels. The stock trades at a premium that makes some investors uncomfortable.
Recent volatility has tested investor conviction. PLTR shares tumbled 6.7% on February 12 after Michael Burry dropped his 10,000-page thesis. The famous investor questioned whether the AI investment boom can sustain itself. His analysis covered topics including data center depreciation and stretched AI company valuations.
Analyst Consensus and Price Action
Wall Street’s collective view leans cautiously positive. TipRanks shows PLTR carries a Moderate Buy rating based on 11 Buy calls, six Hold ratings, and two Sell recommendations. The average price target sits at $192.38, pointing to 46.4% potential upside.
The stock has posted 10.3% gains over the trailing twelve months. Shares rose 1.7% Friday after the Freedom Capital Markets upgrade announcement.
Palantir recently renewed its long-standing partnership with Airbus, extending support for the Skywise aviation data platform. The collaboration has run for more than a decade. Deutsche Bank lifted its price target from $160 to $200 while maintaining a Hold stance. The company is also considering expansion of its Manhattan office footprint beyond the current 202,146 square feet.
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