Analyst Gil Luria raised Palantir's price target from $165 to $175, indicating a potential upside of 39% from its recent closing price. Palantir's stock has faced challenges in 2026, dropping over 29% amid concerns that businesses might prefer AI models from competitors like OpenAI and Anthropic.
However, Luria argues that the ongoing tensions between Anthropic and the U.S. government highlight the reliability of Palantir's orchestration tools, which allow for smoother transitions between AI models without significant disruption to enterprise customers.
He also noted that Palantir's current valuation, with a forward price-to-earnings ratio of approximately 71, is significantly more attractive compared to its peak of over 250 in November. Following the upgrade, Palantir's shares rose more than 3%.
The majority of analysts remain optimistic about the stock, with 21 out of 33 rating it a buy or strong buy, while only a few have assigned underperform or sell ratings