Goldman expects Palantir could enter another phase of outperformance into 2027 and said the stock trades at a discount to its growth peers following its year-to-date underperformance.
- Goldman Sachs upgraded Palantir to ‘Buy’ from ‘Neutral’ and set a $230 price target, implying about 18% upside from Wednesday’s close.
- Analyst Gabriela Borges said Palantir’s total addressable market “may be setting up for another step function change in depth.”
- She cited demand for sovereign AI, bespoke applications and its verticalization strategy for the upgrade.
Palantir (PLTR) shares bucked the broader market sell-off in early trade on Thursday, putting the stock on track for a more than 10-month high and within $8 of a record peak after Goldman Sachs upgraded the defense AI software company to ‘Buy’ from ‘Neutral’.
Goldman Sachs analyst Gabriela Borges set a price target of $230 on PLTR stock, implying an 18% upside from Wednesday’s close and a 10% gain from its record high of over $207 in October last year.
PLTR stock gained as much as 2.5% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing.
Goldman Sees Another Phase Of Outperformance Into 2027
According to Borges, Palantir could be entering another period of outperformance. The firm’s industry conversations suggest the stock is setting up for further gains into 2027, according to a research note cited by TheFly.
Borges said Palantir’s total addressable market “may be setting up for another step function change in depth” as demand grows for sovereign AI, bespoke applications and the company’s newer verticalization strategy.Sovereign AI refers to efforts by governments and organizations to develop or control AI infrastructure and systems within their own jurisdictions. Bespoke applications are software solutions tailored to specific customers or industries, while verticalization involves adapting products and services to the needs of particular sectors.
Goldman also noted that Palantir’s shares have underperformed year to date, leaving the stock trading at a discount to its growth peers.
How Does Retail Feel About PLTR Stock?
On Stocktwits, retail sentiment around Palantir remained in ‘neutral’ territory over the past day, while chatter increased to ‘normal’ from ‘low’ levels.
Retail traders on the platform expressed differing views on the stock’s next move. One trader suggested that a move to $200 would confirm a market top and said that a broader correction was needed.
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Another trader was more optimistic, expecting Palantir to reach $205 after the market opened and potentially move higher.
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PLTR stock has gained around 15% this year and over 6% in the last 12 months.
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