Palantir (PLTR) Stock Gets Double Buy Rating After 35% Drop – Time to Buy?

TLDR

• UBS upgraded Palantir $PLTR to Buy with a $180 price target after a ~35% pullback from highs
• Rosenblatt initiated coverage with a Buy rating and a $150 price target, calling PLTR an “attractive entry point”
• Q4 earnings beat estimates: EPS $0.25 vs $0.23 expected, revenue $1.41B vs $1.34B expected, up 70% year-over-year
• Insiders sold over 1 million shares worth ~$142M last quarter, cutting insider ownership to ~9.23%
• Consensus rating is “Moderate Buy” with an average price target of $191.05, implying ~38.9% upside

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Palantir $PLTR climbed 1.3% on Thursday to $135.94 after UBS upgraded the stock from Neutral to Buy and set a $180 price target.

Palantir Technologies Inc., PLTR

UBS analyst Karl Keirstead told investors to step in after the stock’s roughly 35% slide from its recent highs. He called Palantir a “premier growth story” in software and said the company sits “at the nexus of the two most powerful spending trends — AI and Data.”

Keirstead added that channel checks pointed to a “very strong demand backdrop,” suggesting customer adoption remains healthy. UBS projects revenue growth of around 70% in 2026, with margins staying in the mid-50% range.

The stock traded as high as $137.51 during the session. Volume came in at around 44.5 million, about 13% below the daily average.

Rosenblatt Joins With a Fresh Buy Call

Also on Thursday, Rosenblatt analyst John McPeake initiated coverage with a Buy rating and a $150 price target.

McPeake described Palantir as a “market-disrupting, uniquely positioned AI software leader.” He cited the stock’s 33% decline from its October high as creating an attractive entry point.

He expects Palantir to maintain a sustainable growth trajectory and benefit from margin leverage as revenue scales up. The company’s gross profit margin currently sits at 82%, with revenue up 56% over the last twelve months.

These two upgrades come on top of recent bullish calls from Mizuho, Freedom Capital, and Robert W. Baird. The current Wall Street consensus sits at “Moderate Buy,” based on 14 Buys, 4 Holds, and 2 Sell ratings, with an average price target of $191.05.

Q4 Beat, But Valuation Remains a Sticking Point

Palantir reported Q4 earnings on February 2nd. EPS came in at $0.25, beating the $0.23 estimate. Revenue hit $1.41 billion, ahead of the $1.34 billion consensus, and up 70% year-over-year.

Return on equity was 23.81% and net margin came in at 36.31%. Analysts expect full-year EPS of $0.31.

Despite the strong numbers, the stock carries a P/E ratio of around 216. That kind of valuation leaves little room for any stumble on execution.

The stock’s 50-day moving average sits at $161.79, and the 200-day moving average is at $170.49. The current market cap is $324 billion.

On the institutional side, 45.65% of the stock is held by hedge funds and institutional investors. Several smaller firms added to positions in recent quarters.

One headwind worth watching: insiders sold over 1.05 million shares worth approximately $142 million last quarter. Insider Ryan Taylor sold 19,988 shares on February 20th at $133.72. Insider Stephen Cohen sold 327,088 shares the same day, reducing his ownership by 99.82%.

Insider ownership now stands at 9.23%.

On the positive side, DISA granted Palantir’s PFCS Forward provisional Impact Level 6 authorization, opening up deployment in the most sensitive Department of Defense cloud environments. Rackspace was also named a dedicated implementation partner for Palantir’s Foundry and AIP platforms.

As of Thursday’s close, PLTR last traded at $135.94.

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