UBS analyst Karl Keirstead expressed confidence in Palantir's position as a leading AI enabler following insights gained from the company's recent AIPCon event. Despite a nearly 3% decline in shares year-to-date due to valuation concerns and a broader tech stock rotation, Palantir's stock has shown remarkable growth in previous years, with increases of 135% in 2025, 340% in 2024, and 167% in 2023.
Currently trading at 51 times expected free cash flow for 2027, UBS argues that Palantir's valuation is attractive compared to peers like Snowflake and CrowdStrike. The firm believes that Palantir's strong growth and margin profiles justify a premium valuation, particularly as it leads in key areas such as AI, data, and modern defense technology.
This positive outlook aligns with the broader consensus on Wall Street, where 23 out of 33 analysts recommend buying or strongly buying the stock