Freedom Capital Markets upgraded Palantir Technologies Inc. (NASDAQ:PLTR) from Sell to Buy on Friday and reiterated a price objective of $170.00.
The firm pointed to Palantir’s Q4 2025 results as the catalyst for the rating change. The quarter outperformed management guidance and analyst estimates, with particularly strong acceleration in the U.S. commercial and government segments. According to Freedom Capital Markets, the company’s Artificial Intelligence Platform - AIP - is at the center of that momentum, helping to accelerate sales cycles and move pilot projects into larger, enterprise-level contracts.
Operationally, Palantir showed signs of improved execution. The company expanded both gross and operating margins in the period, delivering profitability metrics that exceeded market expectations. That improvement was a key factor in Freedom Capital Markets’ decision to lift its view on the shares.
However, the research note emphasized a continued weakness overseas. Palantir’s international business remains constrained by structural adoption issues and procurement hurdles, which the firm said are limiting growth outside the U.S.
Management presented an upbeat outlook for Q1 2026 and for the full year 2026 that topped consensus estimates, signaling management’s confidence in what they framed as durable, structural demand for AI infrastructure. In response, Freedom Capital Markets raised its revenue forecasts for 2026 and 2027.
The research house also described the recent sharp pullback in Palantir’s share price as appearing unjustified in light of the company’s ongoing hypergrowth and the underlying strength of AIP.
Other developments noted alongside the upgrade:
- Palantir extended a multi-year agreement with Airbus to continue supplying technology for the Skywise platform, supporting Airbus’s civil aviation data platform intended to enhance operational efficiency and safety.
- Deutsche Bank raised its price target on Palantir from $160 to $200 but kept a Hold rating, citing lingering valuation concerns.
- DA Davidson maintained a Neutral rating on the stock. That affirmation came amid public criticism from Michael Burry in a newsletter that questioned aspects of the AI sector and highlighted issues such as data center depreciation and high valuations for AI companies.
- Palantir is reportedly exploring options to expand its Manhattan office footprint; the company currently leases approximately 202,146 square feet in the area.
The collection of analyst moves, the extended Airbus collaboration, and management’s forward guidance together framed Freedom Capital Markets’ decision to upgrade the rating and lift revenue projections for the next two years.