TLDR
- Palantir stock jumped 5.8% Monday and is up 13% over four sessions, driven by US and Israeli military strikes on Iran.
- Eight Wall Street firms upgraded PLTR last month during a 38% pullback from its November record high.
- Rosenblatt raised its price target to $200 from $150, citing war-driven demand for Palantir’s AI defence tools.
- The US government ordered a six-month phase-out of Anthropic’s AI models on Feb 27, potentially opening the door wider for Palantir.
- Of 31 analysts now covering PLTR, 20 rate it a buy — up from just nine at the start of the year.
Palantir Technologies has had a rough few months. The stock fell 38% from its November 3 record high to a February 24 low, dragged down by valuation concerns and controversy over its work with ICE and the Department of Homeland Security. Investor Michael Burry added fuel to the fire with pointed criticism about the company’s growth outlook.
Palantir Technologies Inc., PLTR
But the mood has shifted fast.
US and Israeli military strikes on Iran lit a spark under PLTR last week. The stock jumped 5.8% on Monday alone, bringing its four-session gain to 13%. The Trump administration has said the conflict could last weeks. Iranian officials suggest it could run longer.
For a company that earns roughly half its revenue from US government and military contracts, that kind of geopolitical backdrop gets attention.
“The positive move in the stock is an emotional reaction to how Palantir is positioned with the government and military,” said Tim Pagliara, chief investment officer at Capwealth Advisors. “The war really speaks to the theme of how the company is so embedded in the government and the moat it has there.”
The rally comes on top of a wave of analyst upgrades. Eight firms raised their ratings on PLTR last month, including UBS, Mizuho, HSBC, Baird, and William Blair. Of the 31 analysts now covering the stock, 20 rate it a buy and the consensus price target sits around $190 — implying about 31% upside from Monday’s close.
At the start of 2026, just nine analysts had buy ratings. That’s a meaningful shift.
Rosenblatt Raises Target to $200
Rosenblatt Securities went further than most. The firm raised its price target to $200 from $150 while keeping its Buy rating, citing global instability and demand for wartime solutions. Rosenblatt analyst John McPeake expects the Middle East conflict to highlight the advantage of Palantir’s integrated platform over standalone large language models.
The new target is based on a 1.2x price-to-earnings growth ratio, up from 0.9x, using 88 times 2027 earnings estimates. Rosenblatt maintains street-high estimates for Palantir’s 2027 financials.
The firm also flagged a notable government move: on February 27, the US government ordered all agencies to stop using Anthropic’s AI technologies, one day after Anthropic stated its models should not be used in fully autonomous weapons. A six-month phase-out of Anthropic’s large language models followed. Operation Epic Fury commenced at 01:15 ET on February 28.
Rosenblatt believes this creates an opening for Palantir.
Strong Earnings Backstory
The upgrades don’t exist in a vacuum. Palantir’s most recent earnings beat Wall Street expectations and included a revenue forecast well above estimates. Projected revenue growth of 73% over the next 12 months ranks fifth in the S&P 500.
UBS analyst Karl Keirstead called Palantir “the premier growth story in software” in a February 26 note, adding that the valuation has reached “a level that many investors can make a strong valuation case for the stock.”
Valuation is still a real concern. PLTR trades at roughly 104 times forward earnings and 45 times estimated forward sales — making it the most expensive stock in the S&P 500 on a price-to-sales basis. Its P/E ratio stood at 247 times as recently as October 30.
The stock currently trades at $145.17, down 30% from its 52-week high of $207.52, but up 74% over the past year.
Seventeen analysts have revised earnings estimates upward for the upcoming period, per InvestingPro data.
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