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Palantir Stock Soars on Goldman Sachs Upgrade
8 Oct
Summary
- Goldman Sachs upgrades Palantir to Buy with $230 target.
- Analyst sees Palantir outperforming into 2027.
- Palantir revenue run rate at $8 billion with 100% growth.
Goldman Sachs initiated a 'Buy' rating for Palantir Technologies, establishing a $230 price target that suggests an 18% potential increase from its current valuation. This upgrade stems from the belief that the company is poised for a new phase of strong performance extending into 2027.
The total addressable market for Palantir appears to be expanding, driven by the adoption of sovereign AI and the development of bespoke applications. Palantir is currently operating with an $8 billion revenue run rate, achieving approximately 100% growth, with a robust 85% gross profit margin over the last twelve months.
The company's unique forward-deployed engineer model, which relies on rapid feedback loops between its field operations and product development, has been automated through AI. This strategic advantage has allowed Palantir to maintain its lead despite increased investments by competitors in early 2026.
While Palantir shares have seen a 16% year-to-date increase, underperforming the Nasdaq-100 Index, they have surged 38% in the past six months. Analysts note that the stock trades at a discount on an enterprise value to free cash flow basis, with a PEG ratio of 0.53, though some analyses suggest it is currently overvalued relative to its fair value.
Other analysts have also shown positive sentiment, with Yorkville Ives initiating an 'Outperform' rating and a $250 price target, and UBS raising its target to $250 due to strong AI demand. Rosenblatt reiterated a 'Buy' rating and $225 target following the successful rollout of Palantir's AI-powered SMART system for the Federal Aviation Administration in early 2026.
