Palantir Stock Jumps on DA Davidson Upgrade to Buy—July 9

Palantir Technologies (NASDAQ: PLTR) received a major vote of confidence on July 2 when DA Davidson upgraded the stock to Buy from Neutral and raised its price target to $175 from $165. Analyst Gil Luria cited compressed valuation, accelerating profit growth, and strengthening competitive advantages in AI software. The stock trades near $132, implying 39% upside from the upgrade, despite being down more than 20% year-to-date.

Why the upgrade matters now

Palantir’s stock fell 34% in the first half of 2026 as investors grew wary of high-flying AI stocks. But the company’s financial results tell a different story. First-quarter revenue jumped 85% year-over-year to $1.63 billion, marking the highest growth rate in company history. Adjusted earnings per share surged 154% to $0.33. DA Davidson raised its 2026 and 2027 EPS estimates above Wall Street consensus, signaling confidence in the company’s trajectory.

The AI orchestration thesis

Luria argues that Palantir’s real edge lies in its AI orchestration platform, which lets enterprises deploy multiple AI models without locking into a single provider. This matters because frontier model providers face real risks. Anthropic recently pulled Claude Fable 5 and Claude Mythos 5 from the market after U.S. government restrictions. Companies that built solutions on those models faced disruption. Palantir’s platform insulates customers from that risk, making it increasingly valuable as enterprises scale AI deployments.

Commercial expansion accelerates globally

Beyond the analyst upgrade, Palantir announced two major partnerships on July 8. The company expanded its enterprise agreement with GNP Seguros, Mexico’s largest insurer, deepening its footprint in Latin America. It also formed a new alliance with SNP SE to embed its AI tools into large enterprises undergoing SAP transformations across Europe. These deals signal that Palantir is moving beyond defense and government work into regulated commercial sectors at scale.

Valuation still steep but improving

Palantir trades at a forward P/E of 93 and a price-to-sales ratio of 45.5, metrics that look extreme in isolation. Meyka grades the stock B+ with a neutral recommendation, citing strong ROE and ROA scores offset by a weak valuation score. However, Luria’s thesis rests on earnings growth outpacing the stock price, which recent results support. The 12-month Meyka forecast of $223.28 suggests limited downside from current levels if growth continues.

Final Thoughts

Palantir’s 20% year-to-date decline has created an entry point for investors willing to bet on AI infrastructure. With Meyka grading the stock B+ and DA Davidson targeting $175, the risk-reward tilts toward upside if commercial momentum holds.

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