Key Takeaways
- PLTR shares climbed 5.8% in Monday’s session and have advanced 13% across the last four trading days, propelled by military operations against Iran involving US and Israeli forces.
- During last month’s 38% decline from the November peak, eight Wall Street research firms elevated their ratings on Palantir.
- Rosenblatt Securities boosted its target price to $200 from $150, highlighting conflict-driven appetite for Palantir’s defense-focused AI platforms.
- On February 27, US government agencies received orders to discontinue Anthropic’s AI systems over a six-month timeline, creating potential opportunities for Palantir.
- Buy-rated coverage on PLTR has expanded from merely nine analysts in early January to 20 out of 31 total analysts currently tracking the stock.
Palantir Technologies endured a challenging winter period. Shares plummeted 38% between the November 3 peak and their February 24 trough, weighed down by elevated valuation metrics and public backlash over contracts with ICE and the Department of Homeland Security. Skepticism intensified when investor Michael Burry publicly questioned the company’s expansion prospects.
Palantir Technologies Inc., PLTR
However, sentiment has reversed dramatically.
Military action targeting Iran by US and Israeli forces ignited renewed interest in PLTR shares throughout last week. Monday’s session alone produced a 5.8% gain, extending the four-day advance to 13%. Trump administration officials indicated the military engagement could persist for several weeks, while Iranian leadership suggested an even longer timeframe.
For an enterprise deriving approximately half its total revenue from US government and defense contracts, such geopolitical developments carry significant weight.
“The stock’s upward momentum reflects an emotional response to Palantir’s strategic positioning within government and military spheres,” explained Tim Pagliara, chief investment officer at Capwealth Advisors. “The conflict underscores just how deeply integrated the company has become with government operations and the competitive advantages that provides.”
This surge follows a substantial uptick in analyst optimism. Last month saw eight research firms upgrade their PLTR recommendations, including prominent names like UBS, Mizuho, HSBC, Baird, and William Blair. Among the 31 analysts currently publishing research on the stock, 20 now assign buy ratings, with the average price target hovering near $190 — suggesting approximately 31% appreciation potential from Monday’s closing level.
In early January 2026, merely nine analysts maintained buy recommendations. The transformation is substantial.
Rosenblatt Securities Pushes Target to $200
Rosenblatt Securities adopted a particularly aggressive stance. The firm elevated its price objective to $200 from $150 while maintaining its Buy recommendation, pointing to worldwide instability and escalating demand for combat-ready technology solutions. Rosenblatt analyst John McPeake anticipates that Middle Eastern hostilities will demonstrate the superiority of Palantir’s comprehensive integrated platform compared to isolated large language model offerings.
The revised target reflects a 1.2x price-to-earnings growth multiple, increased from 0.9x, applied to 88 times projected 2027 earnings. Rosenblatt continues publishing the Street’s most optimistic 2027 financial projections for Palantir.
The firm also highlighted a significant regulatory development: on February 27, federal government departments received directives to cease deployment of Anthropic’s AI technologies, coming just one day after Anthropic declared its models inappropriate for fully autonomous weapons applications. A six-month transition period for removing Anthropic’s large language models was established. Operation Epic Fury launched at 01:15 ET on February 28.
Rosenblatt interprets this development as advantageous for Palantir’s competitive position.
Impressive Financial Performance Foundation
The rating upgrades aren’t occurring without supporting fundamentals. Palantir’s latest quarterly results exceeded Wall Street consensus across key metrics and featured revenue guidance significantly above analyst expectations. Anticipated revenue expansion of 73% over the coming 12 months places the company fifth among all S&P 500 constituents.
UBS analyst Karl Keirstead characterized Palantir as “the premier growth story in software” in a February 26 research note, observing that the valuation has declined “to a level that many investors can make a strong valuation case for the stock.”
Valuation metrics remain stretched nonetheless. PLTR currently commands approximately 104 times forward earnings and 45 times projected forward sales — establishing it as the S&P 500’s most expensive stock on a price-to-sales basis. Its P/E multiple registered at 247 times as recently as October 30.
Shares closed at $145.17, representing a 30% discount from the 52-week high of $207.52, while maintaining a 74% gain over the trailing twelve months.
Seventeen analysts have elevated their earnings projections for the upcoming reporting period, according to InvestingPro data.
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