Palantir shares jump after analyst upgrade, with one Wall Street bull calling for a major year-ahead rebound

Palantir Technologies has gotten a bullish lift on Wall Street after an analyst upgrade, even as the AI and data analytics company has struggled to impress investors this year. In recent coverage, commentators highlighted that the stock’s performance has lagged expectations, but that at least one analyst thinks the selloff may be overdone and that shares could meaningfully outperform over the next year.

The immediate catalyst cited by market outlets was an upgrade by D.A. Davidson analyst Gil Luria. According to the reporting, Luria moved Palantir from neutral (hold) to buy, while raising his price target to $175 from $165. The same reports framed the change as implying roughly 39% upside versus Palantir’s Wednesday closing price, though the exact math depends on the precise reference point used by each outlet.

In the session described, Palantir shares were reported to be up as much as 5.7%, and still higher at 3.1% around 11:38 a.m. ET, suggesting the upgrade and accompanying commentary were driving near-term momentum. Other coverage also characterized Palantir’s earlier period of weakness as a valuation-driven “funk,” pointing to a view that the market had priced the company too expensively relative to peers.

The argument for the rebound, as described in the market coverage, centered on Palantir’s improving financial performance and what the analyst portrayed as a more attractive valuation. Luria’s quoted view was that Palantir “has grown into its valuation as profits have soared,” and that a compression in the “multiple” had created what he called a favorable setup for investors.

The same reporting pointed to Palantir’s first-quarter results as support for the thesis, stating revenue rose 85% year over year to $1.63 billion. It also described the quarter as Palantir’s fastest year-over-year growth rate and said it was the 11th consecutive quarter of accelerating growth. Separately, the coverage noted that Palantir’s shares had fallen about 38% from their peak, framing the upgrade as a bet that the market’s pessimism has gone too far.

Beyond the single-analyst call, the bullish narrative fits a broader debate in the AI software sector: investors often oscillate between rewarding companies for rapid revenue growth and punishing them for paying too much for that growth. When sentiment turns, even firms with strong top-line expansion can see their stock trade down if valuations stop looking justified.

Still, several important details are not confirmed in the available posts. The cited market articles do not disclose the full set of valuation assumptions behind the $175 target, nor do they lay out a detailed path for how Palantir would translate growth into future earnings and cash flow at the pace investors would need for a “more than double” year-ahead outcome. The reporting also does not provide the complete list of analyst model inputs (such as forward revenue growth rates, margins, or share-count assumptions).

Looking ahead, investors will likely watch whether Palantir continues to demonstrate sustained growth acceleration and whether the market chooses to reward it with multiple expansion rather than continued valuation compression. In the near term, additional analyst notes, earnings follow-ups, and guidance for upcoming quarters could determine whether the upgrade momentum becomes a durable repricing or fades as expectations reset.