Palantir Shares Advance After William Blair Upgrade to Outperform

Core Viewpoint - Palantir Technologies' shares experienced a rise of over 2% intraday following an upgrade from William Blair, indicating positive momentum in both government and commercial sectors after a recent selloff [1][2]. Group 1: Stock Upgrade and Market Performance - William Blair upgraded Palantir from Market Perform to Outperform ahead of earnings, citing a significant 30% decline in share price as a buying opportunity [2]. - The firm noted that proprietary tracking data indicates sustained momentum in Palantir's operations, with increased engagement from the current U.S. administration and expanding workflows among enterprise customers [2][5]. Group 2: Financial Expectations and Valuation - The analyst highlighted Palantir's strong performance in the September quarter, referring to it as an exceptional "Rule of 114," with expectations for a robust December quarter [3]. - While acknowledging that Palantir's valuation remains elevated, it is now considered more reasonable in comparison to recent venture capital rounds within the AI ecosystem [3]. Group 3: Market Sentiment and Future Projections - Despite the broader software sector selloff, William Blair anticipates a positive earnings reaction for Palantir based on data and industry discussions [4]. - The firm expects that even if shares decline post-earnings, they will recover to above $200 within the next 12 months due to ongoing growth and margin expansion [4]. - Concerns regarding government diversification away from sole-source analytics providers have diminished under the new administration, reinforcing Palantir's position as a key player in the AI supply chain [5].