Palantir (PLTR) Stock Rebounds with Upgrade After Burry Selloff

TLDR

• Palantir (PLTR) stock received rare double upgrade from Sell to Buy by Freedom Capital Markets with $170 price target
• Q4 earnings reached $0.25 per share, beating $0.23 estimate, while revenue climbed 70% to $1.407 billion
• Commercial revenue jumped 137% to $507 million and government revenue rose 66% to $570 million
• Analyst says AI agents pose no threat to Palantir’s long-term business model, highlighting AIP platform strength
• Stock fell 6.7% on February 12 after Michael Burry released critical thesis on AI investment sustainability

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Palantir Technologies caught Wall Street’s attention Friday when Freedom Capital Markets delivered a rare double upgrade, moving the stock from Sell to Buy. Analyst Almas Almaganbetov set a $170 price target, representing 29.4% upside from current levels.

Palantir Technologies Inc., PLTR

The upgrade followed knockout Q4 results that beat expectations across every metric. Earnings per share hit $0.25, topping the $0.23 consensus. Revenue reached $1.407 billion, crushing the $1.34 billion forecast while posting 70% year-over-year growth.

The revenue breakdown revealed explosive momentum in key segments. Commercial revenue surged 137% year-over-year to $507 million. Government revenue grew 66% to $570 million. Both segments demonstrated strong demand for Palantir’s data analytics solutions.

AI Platform Fuels Expansion

Almaganbetov highlighted Palantir’s Artificial Intelligence Platform as the primary growth driver. The AIP platform has been converting pilot programs into large-scale contracts while accelerating sales momentum in the U.S. market. This pattern indicates structural rather than cyclical demand for AI infrastructure.

The analyst raised revenue forecasts for fiscal 2026 and 2027. He dismissed concerns about new AI agents threatening Palantir’s business model. Management’s Q1 and full-year 2026 guidance exceeded consensus estimates, reinforcing confidence in sustained growth.

Palantir’s operational performance improved during the quarter. Gross and operating profitability expanded beyond market expectations. International markets continue to underperform due to adoption and procurement challenges.

Market Reaction and Analyst Views

The upgrade arrived after recent volatility in PLTR shares. The stock dropped 6.7% on February 12 following Michael Burry’s release of a 10,000-page thesis. The Big Short investor questioned AI investment sustainability and raised concerns about data center depreciation and company valuations.

D.A. Davidson analyst Gil Luria maintained his Hold rating, citing expensive valuation levels. The diverging views highlight ongoing debate about Palantir’s premium pricing.

Wall Street Consensus

TipRanks data shows PLTR carries a Moderate Buy consensus rating. The rating includes 11 Buy recommendations, six Hold ratings, and two Sell ratings. The average analyst price target stands at $192.38, implying 46.4% upside potential.

PLTR shares have gained 10.3% over the past year. The stock rose 1.7% Friday following the Freedom Capital Markets upgrade.

Recent corporate developments include extending a multi-year agreement with Airbus for the Skywise platform. The partnership has spanned over a decade, supporting civil aviation data operations. Deutsche Bank recently raised its price target from $160 to $200 while keeping a Hold rating. The company is exploring Manhattan office expansion beyond its current 202,146 square feet of leased space.

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