UBS raised its Palantir price target to $250 from $220 on Tuesday, reiterating a buy rating and arguing the data analytics company trades at an unjustified discount to AI software peers despite leading growth and margin profiles.
UBS reiterated a buy rating on Palantir Technologies on Tuesday and raised its price target by approximately 14%, to $250 from $220, arguing the data analytics company looks undervalued relative to peers despite carrying some of the strongest growth and margin profiles in enterprise software.
The revised target implies roughly 44% upside from Palantir's close on Monday, according to the bank.
Analyst Karl Keirstead cited a recent visit to Palantir's AIPCon customer and leadership event as reinforcing his conviction. "Last week we attended Palantir's AIPCon customer/leadership event … our view of Palantir as the best AI enabler in the market (making frontier models/AI useful in large enterprises) was if anything bolstered by these conversations [with Palantir executives and customers] and demand momentum seems robust," Keirstead wrote in a report published Tuesday.
Palantir's shares have edged down nearly 3% year to date, pressured by concerns over valuation and a broader rotation away from technology stocks during the summer. The retreat follows a series of sharp gains — the stock surged 340% in 2024, 135% in 2025, and 167% in 2023.
Even after those moves, the stock now trades at 51 times expected free cash flow for 2027, a level UBS characterized as a discount given Palantir's positioning.
Keirstead named Snowflake and CrowdStrike as peers against which Palantir looks comparatively cheap at current levels.
The analyst attributed the valuation discount to two investor concerns: worry that Palantir's near-term growth rate may be approaching a peak, and the possibility that foundation model providers could begin competing directly for the data software layer where Palantir operates.
UBS pushed back on both concerns. "Palantir deserves a material multiple premium given its leading position in three key growth areas — AI, data and modern defense tech, making it a relatively cheap stock," Keirstead wrote.
Palantir provides AI-integrated software platforms to clients that include the U.S. Department of Defense, enabling users to analyze large data sets and operationalize outputs from large language models within enterprise environments.
The UBS call aligns with the broader Wall Street consensus. According to LSEG data, 23 of 33 analysts covering Palantir rate the stock a buy or strong buy as of Tuesday.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
More from Marc →Amazon said Sunday it is pausing all operations with Miami-based cargo carrier 21 Air after a Boeing 767-300 freighter operated on behalf of Amazon Air overran a runway at Miami International Airport last weekend, killing five people.
Hyperscale data centers are creating concentrated physical assets worth tens of billions of dollars each, pushing the insurance industry toward catastrophe bonds as a potential solution — though the first dedicated deal is still 12 to 18 months away, experts say.
RBC Capital Markets initiated Dell Technologies with an outperform rating and a $640 price target on Friday, sending shares up 12% and extending a year-to-date gain of nearly 350% driven by surging AI server demand.
Written for readers who already know the basics — markets, AI, and the policy decisions that shape both.