TLDR
- PLTR shares rose 5.8% on Monday, gaining 13% across four consecutive sessions amid escalating US and Israeli operations against Iran.
- Last month saw eight Wall Street analysts upgrade their ratings during a 38% decline from the November peak.
- Rosenblatt Securities lifted its price target to $200 from $150, pointing to conflict-driven appetite for Palantir’s defense AI capabilities.
- On Feb 27, US agencies received orders to eliminate Anthropic’s AI models within six months, creating potential opportunities for Palantir.
- Buy ratings now total 20 among 31 analysts tracking PLTR — a sharp increase from only nine buy ratings in early January.
Palantir Technologies has endured a challenging stretch. Shares plummeted 38% between the November 3 peak and February 24 bottom, weighed down by valuation questions and backlash surrounding its contracts with ICE and the Department of Homeland Security. Investor Michael Burry amplified concerns with sharp critiques about the company’s expansion prospects.
Palantir Technologies Inc., PLTR
However, sentiment has reversed dramatically.
Military operations by US and Israeli forces against Iran ignited renewed interest in PLTR shares last week. Monday’s session alone delivered a 5.8% surge, extending the four-day advance to 13%. The Trump administration indicated the confrontation may persist for weeks. Iranian authorities suggest an even longer duration.
For an organization generating approximately half its income from US government and defense contracts, such geopolitical developments carry significant weight.
“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 surge follows a substantial wave of Wall Street upgrades. Eight firms elevated their PLTR ratings last month, including UBS, Mizuho, HSBC, Baird, and William Blair. Among the 31 analysts currently tracking the stock, 20 recommend buying while the average price target hovers around $190 — suggesting roughly 31% potential gain from Monday’s closing price.
In early 2026, only nine analysts maintained buy recommendations. The transformation is substantial.
Rosenblatt Boosts Price Target to $200
Rosenblatt Securities exceeded most peers in its optimism. The firm elevated its price target to $200 from $150 while maintaining its Buy recommendation, emphasizing global instability and appetite for conflict-related 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 updated target reflects a 1.2x price-to-earnings growth ratio, increased from 0.9x, applying 88 times 2027 earnings projections. Rosenblatt continues publishing the street’s highest estimates for Palantir’s 2027 financial performance.
The firm also highlighted a significant government decision: on February 27, US government agencies received directives to discontinue Anthropic’s AI technologies, occurring one day after Anthropic declared its models inappropriate for fully autonomous weapons systems. A six-month elimination period for Anthropic’s large language models ensued. Operation Epic Fury launched at 01:15 ET on February 28.
Rosenblatt sees this development as advantageous for Palantir.
Solid Financial Performance
These upgrades reflect more than speculation. Palantir’s latest quarterly results exceeded Wall Street projections and featured revenue guidance substantially above consensus expectations. Anticipated revenue expansion of 73% over the coming 12 months places it 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 declined “to a level that many investors can make a strong valuation case for the stock.”
Valuation remains a legitimate consideration. 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 reached 247 times as recently as October 30.
Shares currently trade at $145.17, representing a 30% discount from the 52-week high of $207.52, while posting 74% gains over the trailing year.
Seventeen analysts have increased earnings projections for the upcoming reporting period, according to InvestingPro data.
