Palantir Shares Receive Bullish Endorsement from Citigroup

Palantir US69608A1088

In a notable shift of sentiment, Citigroup has upgraded its stance on Palantir Technologies Inc., moving to a "Buy" recommendation and setting a price target of $235. This optimistic call, led by analyst Tyler Radke, suggests a potential 32% upside for the stock, largely predicated on the accelerating adoption of artificial intelligence across government and commercial sectors. The upgrade arrives amidst a complex backdrop for the data analytics firm, marked by strong operational performance but also a premium valuation and significant insider selling activity.

Palantir's underlying business metrics show considerable strength. The company anticipates fourth-quarter revenue to reach $1.33 billion, with full-year revenue projected at $4.4 billion. A standout performer has been its U.S. commercial business, where revenue recently surged by 121% to $397 million. Furthermore, management has provided guidance for positive GAAP operating and net income in every quarter of 2025.

Counterbalancing these robust fundamentals is the stock's extreme valuation. With a price-to-sales multiple of 109, Palantir currently holds the title of the most expensive stock within the S&P 500 index. Following a remarkable 135% advance in 2025, the shares have since retreated approximately 14% from their November peak.

Insider Transactions and Institutional Moves

Over the preceding 90 days, company executives, including Chief Technology Officer Shyam Sankar and President Stephen Cohen, have disposed of shares worth approximately $167.4 million. It is critical to note that these sales were executed under pre-arranged 10b5-1 trading plans established in late 2024. Such plans are designed to prevent allegations of insider trading by setting predetermined timing and volume parameters, meaning they do not necessarily reflect the executives' current outlook on the company's prospects.

The institutional investment landscape presents a mixed picture. JPMorgan Chase significantly increased its stake, adding over 18.5 million shares. Conversely, Kingstone Capital Partners Texas opted to reduce a larger position in the company.

Analyst Consensus and the AI Growth Narrative

Despite Citigroup's bullish pivot, the consensus rating among the 19 analysts covering Palantir remains a "Hold." The median price target among these analysts stands at $202.50. In a separate recent initiation, investment bank Truist Securities also commenced coverage with a "Buy" rating, citing Palantir's formidable positioning for large-scale AI projects with enterprise and government clients.

Earnings estimates for 2026 have been revised upward by 19% over the last three months, signaling that Wall Street continues to place faith in the longevity of the AI growth story. The central question for investors is whether the company's premium valuation can be sustained by its ability to maintain a leadership role in the competitive and rapidly evolving AI sector.