Freedom Capital Markets upgrades Palantir stock to 'Buy' due to AIP growth
On Friday, Freedom Capital Markets upgraded its rating for Palantir Technologies Inc. (NASDAQ:PLTR) from 'Sell' to 'Buy', maintaining a price target of $170.00.
This upgrade follows Palantir's Q4 2025 earnings surpassing both management guidance and analyst expectations. Growth acceleration in the U.S. commercial and government sectors drove performance. The company’s artificial intelligence platform (AIP) acted as a central catalyst in the U.S. market, accelerating sales momentum and converting pilot projects into large-scale contracts.
Palantir demonstrated improved operational execution with gross and operating margins exceeding market expectations. Meanwhile, international market performance continues to lag due to structural adoption and procurement barriers.
Management provided a bright outlook for Q1 2026 and the full year 2026, projecting above-consensus estimates and expressing confidence in sustained, structural demand for AI infrastructure. Freedom Capital Markets raised its revenue forecasts for Palantir from 2026 to 2027.
This upgrade follows Palantir's Q4 2025 earnings surpassing both management guidance and analyst expectations. Growth acceleration in the U.S. commercial and government sectors drove performance. The company’s artificial intelligence platform (AIP) acted as a central catalyst in the U.S. market, accelerating sales momentum and converting pilot projects into large-scale contracts.
Palantir demonstrated improved operational execution with gross and operating margins exceeding market expectations. Meanwhile, international market performance continues to lag due to structural adoption and procurement barriers.
Management provided a bright outlook for Q1 2026 and the full year 2026, projecting above-consensus estimates and expressing confidence in sustained, structural demand for AI infrastructure. Freedom Capital Markets raised its revenue forecasts for Palantir from 2026 to 2027.
The survey company stated that the recent sharp decline in Palantir's stock price is not justified when considering the company’s ongoing hypergrowth and the fundamental strength of its AIP platform.
In other recent news, Palantir Technologies has extended its multi-year contract with Airbus to continue providing technology for the Skywise platform. This collaboration, which has lasted over a decade, supports Airbus’ civil aviation data platform and enhances efficiency and safety. Additionally, Deutsche Bank raised Palantir’s target price from $160 to $200 but maintained a 'Hold' rating due to ongoing valuation concerns. Meanwhile, DA Davidson reaffirmed its 'Neutral' rating on Palantir despite Michael Barry issuing a critical newsletter about the company and the broader AI sector, where issues such as data center depreciation and AI company valuations were raised. In other developments, Palantir is considering expanding its office space in Manhattan, reflecting a trend of technology companies increasing their presence in New York City. The company currently leases approximately 202,146 square feet in the area.
In other recent news, Palantir Technologies has extended its multi-year contract with Airbus to continue providing technology for the Skywise platform. This collaboration, which has lasted over a decade, supports Airbus’ civil aviation data platform and enhances efficiency and safety. Additionally, Deutsche Bank raised Palantir’s target price from $160 to $200 but maintained a 'Hold' rating due to ongoing valuation concerns. Meanwhile, DA Davidson reaffirmed its 'Neutral' rating on Palantir despite Michael Barry issuing a critical newsletter about the company and the broader AI sector, where issues such as data center depreciation and AI company valuations were raised. In other developments, Palantir is considering expanding its office space in Manhattan, reflecting a trend of technology companies increasing their presence in New York City. The company currently leases approximately 202,146 square feet in the area.
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