Palantir Technologies (PLTR) was upgraded by UBS after shares of the enterprise software company fell by roughly 35% from its peak.
Shares of Palantir rose 1.4% in extended trading on Thursday.
“We are upgrading our view of Palantir shares to a Buy from Neutral and recommend that investors take advantage of this -35% move off the peak for the premier growth story in software and a company that is at the nexus of the two most powerful spending trends – AI and Data,” analyst Karl Keirstead wrote in a note to clients. “At 50x our 2027 FCF estimates, Palantir shares are now very attractive given our estimate for 70% revs growth in 2026 and stable mid-50% margins.”
Despite the upgrade, Keirstead did not move his price target on Palantir from $180.
Delving deeper, Keirstead said the debate about Palantir is how long the 50% or more growth can happen, if rivals like Databricks, the hyperscalers, OpenAI (OPENAI), and Anthropic (ANTHRO) emerge. He believes it can.
“Our latest checks [support] a view that Palantir is facing a very strong demand backdrop as it sits at the intersection of AI and data spend,” Keirstead added. “As one partner said, ‘demand is exceptional’. This investment ramp in AI models and data is occurring right now, with Palantir a clear AI winner.”