TLDR
- Palantir shares rose 5.8% Monday, marking a 13% climb over four consecutive sessions amid US and Israeli strikes on Iran.
- Wall Street analysts from eight firms upgraded PLTR throughout last month while the stock corrected 38% from November peaks.
- Rosenblatt Securities lifted its price target to $200 from $150, pointing to conflict-driven demand for Palantir’s defence AI capabilities.
- US agencies received orders on Feb 27 to phase out Anthropic’s AI models over six months, creating potential opportunities for Palantir.
- Among 31 analysts tracking PLTR, 20 now assign buy ratings — a significant increase from nine buy ratings at year-start.
Palantir Technologies experienced a challenging period recently. Shares declined 38% between the November 3 record peak and February 24 lows, pressured by valuation debates and public scrutiny surrounding its contracts with ICE and the Department of Homeland Security. Investor Michael Burry amplified concerns through sharp commentary regarding the company’s expansion prospects.
Palantir Technologies Inc., PLTR
Market sentiment has undergone a rapid transformation.
Military operations by US and Israeli forces against Iran triggered renewed interest in PLTR shares last week. Monday’s session delivered a 5.8% advance, extending the four-day rally to 13%. Trump administration officials indicate the conflict may persist for weeks. Iranian authorities suggest a potentially longer duration.
For an enterprise generating approximately half its revenue from US government and military arrangements, this geopolitical environment commands significant attention.
“The positive move in the stock is an emotional reaction to how Palantir is positioned with the government and military,” said Tim Pagliara, chief investment officer at Capwealth Advisors. “The war really speaks to the theme of how the company is so embedded in the government and the moat it has there.”
This momentum builds upon a substantial wave of analyst upgrades. Eight investment firms elevated their PLTR ratings during last month’s pullback, including UBS, Mizuho, HSBC, Baird, and William Blair. Among 31 analysts currently following the stock, 20 assign buy ratings while the consensus price target reaches approximately $190 — suggesting roughly 31% appreciation potential from Monday’s closing price.
Early 2026 data showed just nine analysts with buy ratings. The transformation is substantial.
Rosenblatt Increases Price Target to $200
Rosenblatt Securities established a more aggressive stance than most peers. The firm elevated its price target to $200 from $150 while maintaining its Buy rating, emphasizing global uncertainty and appetite for conflict-ready solutions. Rosenblatt analyst John McPeake anticipates the Middle East situation will demonstrate the superiority of Palantir’s comprehensive platform compared to isolated large language models.
The revised target reflects a 1.2x price-to-earnings growth ratio, increased from 0.9x, applying 88 times 2027 earnings projections. Rosenblatt continues publishing street-high forecasts for Palantir’s 2027 financial performance.
The firm also highlighted a significant government directive: on February 27, US government agencies received instructions to discontinue Anthropic’s AI technologies, occurring one day after Anthropic declared its models inappropriate for fully autonomous weapons systems. A six-month transition away from Anthropic’s large language models commenced. Operation Epic Fury launched at 01:15 ET on February 28.
Rosenblatt views this development as advantageous for Palantir.
Solid Earnings Foundation
These upgrades stem from concrete performance. Palantir’s latest quarterly results exceeded Wall Street projections and featured revenue guidance substantially above analyst expectations. Anticipated revenue expansion of 73% over the coming 12 months places the company fifth among S&P 500 constituents.
UBS analyst Karl Keirstead described Palantir as “the premier growth story in software” in a February 26 research note, observing that the valuation has reached “a level that many investors can make a strong valuation case for the stock.”
Valuation remains a genuine consideration. PLTR commands approximately 104 times forward earnings and 45 times projected forward sales — positioning it as the S&P 500’s most expensive stock on a price-to-sales basis. Its P/E ratio reached 247 times as recently as October 30.
Shares currently trade at $145.17, representing a 30% discount from the 52-week peak of $207.52, while maintaining a 74% gain over the trailing year.
Seventeen analysts have increased earnings projections for the upcoming period, according to InvestingPro data.
