TLDR
- Goldman Sachs analyst Gabriela Borges upgraded Palantir to Buy from Neutral and set a $230 price target.
- The target implies about 18% upside from Wednesday’s close of $194.12.
- Palantir stock jumped 4% to $202.22 in early trading Thursday while the S&P 500 slipped.
- Borges points to sovereign AI demand and custom enterprise software as growth drivers.
- Palantir trades at 91 times forward earnings, well above the S&P 500 and Nasdaq Composite.
Palantir Technologies stock climbed 4% to $202.22 in early trading Thursday after Goldman Sachs upgraded the data analytics company to Buy from Neutral. The S&P 500 was down 0.3% at the same time.
Palantir Technologies Inc., PLTR
Goldman analyst Gabriela Borges set a $230 price target on the stock. That number implies roughly 18% upside from Wednesday’s closing price of $194.12.
Borges said Palantir’s total addressable market is set to grow. She pointed to rising demand for “sovereign AI,” where governments and companies want to keep their data under local control instead of handing it to public cloud providers.
She also flagged a shift toward custom AI software built for specific business needs, rather than generic chatbot tools. Companies are reportedly willing to pay more for systems that improve things like supply chains and internal decision-making.
D.A. Davidson analyst Gil Luria echoed that view. He rates Palantir Buy with a $250 price target, calling the company a natural fit to become the control layer for enterprise AI as trust in big tech data handling wears thin.
Why Analysts Like the Growth Story
Palantir is currently running at an $8 billion annual revenue pace, with growth near 100%. Revenue grew 79% over the past twelve months, and gross margin sits at 85%, according to InvestingPro data.
Much of that growth comes from Palantir’s forward-deployed engineer model. Company staff work directly with clients to customize the software, and Borges says Palantir has gotten good enough at this process to start automating parts of it with AI.
Nvidia is one customer using Palantir this way, tapping the platform for supply chain insights. Borges also cited CrowdStrike’s new SafeMind security system and Datadog’s forecasting tools as signs that other software firms are chasing similar ground.
Valuation Remains a Sticking Point
Palantir’s forward price-to-earnings ratio stands at 91.1, far above the S&P 500’s 19.4 and the Nasdaq Composite’s 22.5. That gap has followed the stock for a while now.
Analysts expect earnings per share of $1.60 for 2026, rising to $14.38 by 2030. That works out to annual growth above 70%, which helps explain the premium multiple.
The stock carries a PEG ratio of 0.53, which Goldman says reflects a discount to growth peers on an enterprise value to free cash flow basis. InvestingPro’s own model, though, flags the stock as overvalued against its fair value estimate.
Palantir stock is up 16% so far this year, trailing the Nasdaq-100’s 24% gain. Over the past six months it has climbed 38%.
Of 35 analysts tracked by FactSet, 25, or 71%, rate Palantir Buy or Overweight. That compares with a typical Buy ratio of 55% to 60% for S&P 500 companies. The average price target sits near $204.
Other firms have moved recently too. Yorkville Ives started coverage with an Outperform rating and a $250 target, while UBS raised its target to $250 on AI demand. Rosenblatt kept its Buy rating and $225 target after Palantir’s AI-powered SMART system went live with the Federal Aviation Administration, its first U.S. deployment.
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