TLDR
- Freedom Capital Markets upgraded Palantir (PLTR) from Sell to Buy with a $170 price target, representing 29.4% upside potential
- Q4 earnings beat expectations at $0.25 per share versus $0.23 consensus, with revenue hitting $1.407 billion, up 70% year-over-year
- Commercial revenue surged 137% to $507 million while government revenue grew 66% to $570 million
- Analyst dismisses AI agents as a threat to Palantir’s business model, citing strong growth in the company’s Artificial Intelligence Platform (AIP)
- Stock dropped 6.7% on February 12 after Michael Burry released a critical 10,000-page thesis questioning AI investment sustainability
Palantir Technologies received a double upgrade from Freedom Capital Markets on Friday, jumping from Sell to Buy as analyst Almas Almaganbetov dismissed concerns about AI agents threatening the company’s business model. The upgrade came with a $170 price target, implying 29.4% upside from current levels.
Palantir Technologies Inc., PLTR
The big data analytics company delivered impressive Q4 results that crushed expectations across the board. Earnings per share came in at $0.25, beating the $0.23 consensus estimate. Revenue reached $1.407 billion, up 70% year-over-year and well ahead of the $1.34 billion forecast.
The revenue breakdown showed particularly strong momentum. Commercial revenue exploded 137% year-over-year to $507 million. Government revenue wasn’t far behind, growing 66% to $570 million.
AIP Platform Drives Growth
Almaganbetov pointed to Palantir’s Artificial Intelligence Platform as the key driver behind the company’s success. The AIP platform has been accelerating sales in the U.S. market and converting pilot programs into major contracts. This growth pattern suggests the demand for AI infrastructure is structural rather than cyclical.
The analyst raised his revenue forecasts for fiscal 2026 and 2027. He called the recent pullback in the stock “unjustified” given the company’s hypergrowth trajectory. The company’s Q1 and full-year 2026 guidance also topped consensus estimates, showing management confidence in sustained demand.
Palantir’s operating execution improved during the quarter. The company expanded both gross and operating profitability beyond market expectations. International performance continues to lag due to structural adoption and procurement barriers.
Wall Street Remains Divided
Not everyone shares Almaganbetov’s bullish view. D.A. Davidson analyst Gil Luria maintained his Hold rating, calling PLTR shares “expensive” at current valuations. The stock currently trades with a forward P/E ratio that concerns some value-focused investors.
The upgrade came shortly after a dramatic selloff. PLTR stock plunged 6.7% on February 12 following the release of Michael Burry’s 10,000-page thesis. The Big Short investor raised questions about the sustainability of the current AI investment cycle. His newsletter touched on issues including data center depreciation and AI company valuations.
Despite the recent volatility, Wall Street analysts remain cautiously optimistic overall. On TipRanks, PLTR stock carries a Moderate Buy consensus rating based on 11 Buy ratings, six Hold ratings, and two Sell ratings. The average price target sits at $192.38, suggesting 46.4% upside potential from current levels.
The stock has gained 10.3% over the past year. PLTR shares rose 1.7% on Friday following the Freedom Capital Markets upgrade.
Palantir recently extended its multi-year agreement with Airbus to continue supporting the Skywise platform. The collaboration has lasted over a decade and focuses on civil aviation data, enhancing efficiency and safety. Deutsche Bank raised its price target for Palantir from $160 to $200 while maintaining a Hold rating. The company is also exploring options to expand its Manhattan office space, currently leasing approximately 202,146 square feet in the area.
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