Palantir Upgraded to Buy with $180 Target after 35% Pullback
UBS raised Palantir to Buy from Neutral with a $180 price target after shares slid roughly 35% from their peak at 50x projected 2027 free cash flow. It forecasts 70% revenue growth in 2026, a 54% three-year CAGR through 2028, and stable 55–60% non-GAAP margins from strong AI demand.
1. UBS Upgrade and Price Target
UBS upgraded Palantir to Buy from Neutral and maintained a $180 price target after the share price fell about 35% from its peak. The bank noted that the pullback compressed valuation to roughly 50x projected free cash flow for 2027, creating an attractive entry point.
2. Growth Forecasts and Financial Outlook
UBS projects 70% revenue growth for Palantir in 2026 and a three-year revenue CAGR of 54% through 2028. Non-GAAP operating margins are expected to remain in the 55–60% range as free cash flow expands.
3. Demand Trends and Competitive Landscape
Channel checks indicate exceptional enterprise demand as companies accelerate AI adoption and data integration. UBS analysts see no emerging threats from hyperscalers or pure-play AI model providers that could materially disrupt Palantir’s growth trajectory.