Citigroup upgrades Palantir (PLTR.US) rating to "buy": Expected to usher in a "super cycle" of business and government operations in 2026.

Citigroup Group has raised its rating on Palantir (PLTR.US) from "Neutral" to "Buy/High Risk", with a target price of $235, stating that the company is expected to experience a "super cycle" in its commercial and government business this year. Citigroup analyst Tyler Radke pointed out that in recent years, Palantir's stock price has seen amazing growth, driven by its rapid growth acceleration and impressive profit margin expansion, breaking traditional "40 rule" and valuation frameworks. Although the bank has raised its revenue forecast for Palantir in 2025/2026 by over 10% since mid-2021, the stock price has remained relatively flat. Citigroup's rating upgrade on Palantir is based on the view that 2026 is likely to be another year of significant positive forecast revisions. Recent discussions with corporate chief information officers and industry contacts indicate that artificial intelligence budgets and use cases in enterprises are accelerating. The bank also sees significant tailwinds for Palantir's government business, driven mainly by the urgency of defense budget acceleration. Tyler Radke believes that Palantir's government business growth rate for fiscal year 2026 will reach 51%, an increase of approximately 800 basis points year-on-year, exceeding market expectations and potentially reaching 70% or higher. Tyler Radke added, "This forecast is based on our view of the accelerating defense super cycle, as well as potential tailwinds including the lag effects of the government shutdown in 2025 and international (US allies) modernization processes. We will closely monitor announcements of the 'Golden Fog' program and other major defense programs, which could serve as potential catalysts throughout the year (though these may have a greater impact on data for 2027)."