Citi says Palantir’s rally isn’t over, upgrades stock on accelerating enterprise and government demand

January 12, 2026

TL;DR

Citi upgraded Palantir to a buy rating from neutral.
Analyst Tyler Radke raised the price target to $235 from $210.
The upgrade is based on anticipated acceleration in enterprise AI adoption and government spending.
Palantir has experienced significant growth and margin expansion in recent years.
The stock has been relatively flat in recent months despite upward revisions to revenue numbers.
AI budget and use cases are accelerating in the enterprise.
Government spending is expected to increase due to accelerating defense budgets and modernization urgency.
Potential upside case for total revenue growth to reach 70% to 80% in 2026.
Government growth estimates for 2026 are at 51% year over year.
Potential tailwinds include a defense super cycle, government shutdown ramifications, and modernization of U.S. allies.
Key catalysts to watch include the Golden Dome missile defense project and other major defense initiatives.

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