TLDR
- PLTR shares rose 5.8% Monday, gaining 13% across four consecutive sessions amid escalating US and Israeli military operations against Iran.
- Wall Street sentiment shifted dramatically with eight firms upgrading the stock during last month’s 38% correction from November highs.
- Rosenblatt Securities boosted its target to $200 from $150, highlighting conflict-driven appetite for Palantir’s defense AI platforms.
- A February 27 federal mandate to phase out Anthropic’s AI models within six months may expand Palantir’s government opportunities.
- Buy-rated analysts covering PLTR surged to 20 out of 31 total, compared to only nine at the beginning of 2026.
Palantir Technologies endured a challenging period recently. Shares plummeted 38% between the November 3 peak and their February 24 trough, weighed down by stretched valuations and backlash surrounding its immigration enforcement partnerships with ICE and DHS. Investor skepticism intensified when Michael Burry publicly questioned the company’s expansion prospects.
Palantir Technologies Inc., PLTR
Yet sentiment has reversed dramatically.
Military operations by US and Israeli forces targeting Iran ignited renewed interest in PLTR shares last week. Monday’s session alone delivered a 5.8% gain, extending the four-day advance to 13%. The Trump administration indicated hostilities could persist for weeks, while Iranian leadership suggested an even longer timeline.
For an organization generating approximately half its revenue through US government and military contracts, such geopolitical developments carry significant weight.
“The stock’s positive momentum reflects an emotional response to Palantir’s entrenched position within government and military operations,” explained Tim Pagliara, chief investment officer at Capwealth Advisors. “The conflict underscores just how deeply embedded the company is in government infrastructure and the competitive moat that creates.”
This resurgence follows a substantial wave of analyst enthusiasm. Last month witnessed eight firms elevating their PLTR ratings, including prominent names like UBS, Mizuho, HSBC, Baird, and William Blair. Among the 31 analysts currently tracking the stock, 20 now recommend buying, with consensus price targets hovering near $190—suggesting roughly 31% appreciation potential from Monday’s closing price.
Earlier in 2026, only nine analysts maintained buy recommendations. The transformation is striking.
Rosenblatt Pushes Target to $200
Rosenblatt Securities emerged as particularly optimistic. The firm elevated its price objective to $200 from $150 while reaffirming its Buy stance, pointing to global volatility and expanding wartime technology requirements. Analyst John McPeake at Rosenblatt anticipates the Middle East crisis will showcase the superiority of Palantir’s comprehensive platform compared to isolated large language model offerings.
The revised target reflects a 1.2x price-to-earnings growth multiple, increased from 0.9x, applied to 88 times 2027 earnings projections. Rosenblatt continues maintaining the highest estimates on the Street for Palantir’s 2027 financial performance.
The firm also highlighted a significant policy development: on February 27, federal agencies received orders to discontinue Anthropic’s AI technologies, occurring just one day after Anthropic declared its models inappropriate for fully autonomous weapon systems. A six-month wind-down period for Anthropic’s large language models was established. Operation Epic Fury launched at 01:15 ET on February 28.
Rosenblatt views this as a strategic opportunity for Palantir.
Strong Earnings Backstory
The upgraded ratings reflect solid fundamental performance. Palantir’s latest quarterly results exceeded Wall Street projections, accompanied by revenue guidance that substantially topped analyst expectations. Its anticipated revenue expansion of 73% over the coming year places it fifth among S&P 500 constituents.
In a February 26 research note, UBS analyst Karl Keirstead described Palantir as “the premier growth story in software,” noting that the valuation has reached “a level that many investors can make a strong valuation case for the stock.”
Valuation concerns remain legitimate. PLTR currently commands approximately 104 times forward earnings and 45 times projected forward revenue—positioning it as the S&P 500’s priciest stock on a price-to-sales basis. Its P/E multiple reached 247 times as recently as October 30.
Shares currently trade at $145.17, representing a 30% decline from the 52-week peak of $207.52, though still up 74% over the trailing twelve months.
Seventeen analysts have increased earnings projections for the upcoming period, according to InvestingPro data.
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