Analyst Upgrades Palantir, Cites Strong Government Business and Path to $200

After a period of market volatility, Palantir Technologies is receiving a fresh look from Wall Street. Monness, Crespi, Hardt & Co. analyst Brian White has upgraded the data analytics firm to a "Buy," setting a price target of $200. White argues the stock's valuation has settled from its previous highs, presenting a more reasonable entry point for investors.

The upgrade hinges on two primary factors: Palantir's entrenched government business and its improving profitability. The company has secured several significant new contracts with U.S. defense and intelligence agencies since the start of the Trump administration's second term in 2025. This consistent public-sector demand provides a stable revenue foundation.

Simultaneously, Palantir is demonstrating an increased ability to convert sales into profit. The company's focus on operational efficiency is expanding its margins, a key metric that has encouraged analysts. While commercial growth faces economic headwinds, the strength of its government segment is seen as a powerful counterbalance.

"The narrative is shifting from pure speculation to execution, particularly within the halls of government," White noted in his client report. He believes the company's unique software platforms, Gotham and Foundry, have become increasingly difficult for federal clients to replace. This "stickiness," combined with disciplined spending, forms the core of his bullish thesis for a potential rebound in the coming year.

Source: MarketWatch