Mizuho believes that Palantir's recent pullback makes no sense given the accelerating adoption of its artificial intelligence platforms. The bank upgraded the software analytics company, which creates tools for businesses and government agencies, to outperform from neutral. Analyst Gregg Moskowitz's $195 price target implies that shares could rally 47% from here. Shares of Palantir are up 7% over the past 12 months, but have plunged 25% this year. PLTR 1Y mountain PLTR 1Y chart Moskowitz applauded Palantir's spectacular growth, expanding margins and newly attractive risk-reward ratio. "PLTR is in a category of one, delivering total revenue growth, acceleration, and margin expansion at scale that is unlike anything else in software," the analyst wrote. "That being said, we had for months stated a concern that PLTR shares could suddenly be subject to meaningful multiple reversion at some point. With PLTR's 2026E EV/FCF valuation multiple having fallen 46% in the first six weeks of the year, we believe the de-rating has occurred and that the risk/reward is now attractive." Looking forward, Moskowitz said he is bullish as the U.S. commercial business surges, fueled by growing urgency around internal data integration and rising enterprise adoption of artificial intelligence platforms. Revenue from Palantir's U.S. commercial client grew 137% year over year last quarter, he noted. The analyst added that management has guided this growth to at least 115% in 2026, and he views upside as "very likely." Palantir's government business also remains strong, with revenue accelerating to 66% year over year in the fourth quarter. He also applauded "solid" international government growth, led by the UK. "Given rising geopolitical instability and steady award momentum, we believe PLTR can sustain government revenue growth above 40% Y/Y in the near to medium term," he added. Moskowitz thinks Palantir's investment case looks even more compelling given its year-to-date multiple compression. "We find this unjustifiable, particularly as we simply don't envision PLTR being subject to any disruption from AI for the foreseeable future," he wrote. The analyst added that Palantir is one of the most likely beneficiaries of the growing AI revolution. "More broadly, we remain steadfast in our view that PLTR is increasingly well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization," Moskowitz said.
