William Blair’s senior analyst Louie DiPalma believes Palantir Technologies (NASDAQ: PLTR) will report a strong Q4, paving the way for the AI stock to surpass $200 again by the end of 2026.
The data analytics giant is scheduled to post its Q4 release today (after the bell). Consensus is for it to earn about 23 cents a share on $1.34 billion in revenue – both handily above Street estimates.
And while Palantir stock sure remains expensive at a forward price-to-earnings (P/E) ratio of more than “190”, DiPalma argues the current market dynamics suggest it’s not as “overvalued” as many believe.
Note that the Denver-headquartered firm is posting earnings at a time when its share price is down some 25% versus the 52-week high.
Palantir stock may not be that overvalued after all
In his research note, Louie DiPalma agreed that Palantir’s valuation remains “frothy”, but said the premium is still defensible when compared to recent venture rounds in the broader AI ecosystem.
In 2025, emerging artificial intelligence businesses secured private-market valuations that implied even steeper multiple – making PLTR stock appear relatively more grounded.
Additionally, the multinational is strongly positioned to remain at more than 100 on the so-called “Rule of 40”, which serves as an irrefutable evidence of its strong fundamentals.
That blend of profitability and scale – DiPalma argued – justifies Palantir’s lofty forward multiple and tempers concerns that it’s egregiously overvalued.
Why else is William Blair bullish on PLTR shares
William Blair upgraded Palantir shares to “outperform” ahead of the company’s earnings release on February 2nd primarily on proprietary data and shifting political tailwinds.
According to the firm’s internal government and commercial trackers, PLTR’s momentum remains far from exhaustion. If anything – in fact – it’s accelerating in 2026.
Specifically, its data suggests the new administration is “going all-in with Palantir,” cementing the company’s role as the primary operating system for modern defense and federal operations.
On the commercial side, enterprises are rapidly moving beyond pilot phases to integrate Palantir’s AI workflows into core business functions, analyst Louie DiPalma told clients.
This combination of “all-in” public sector support and deepening private sector adoption provides the fundamental backing for his ambitious north of $200 price target on Palantir Technologies.
Technicals warrant buying Palantir ahead of Q4 earnings
Even from a technical perspective, PLTR shares appear worth owning at current levels, given their standard relative strength index (RSI) now sits at about “31” signaling bears may finally be running out of juice.
Meanwhile, options traders are also calling for an 8.9% post-earnings move that could see Palantir trading at nearly $160 by the end of this week.
All in all, PLTR’s solid fundamentals and political tailwinds suggest a potential breakout following the earnings report later today.
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