JPMorgan initiated coverage of Palantir Technologies with an Overweight rating and a December 2027 price target of $262 per share, adding the stock to its Analyst Focus List. Analyst Brian Essex wrote that enterprises are moving from deploying AI to seeking returns on it, and that Palantir is already delivering ROI, with revenue growth accelerating for the 12th straight quarter to 93% year over year. Non-GAAP operating margin reached 62% and free cash flow grew 126% last quarter. JPMorgan said the $262 target equals 55 times its 2028 EV/free cash flow estimate on $11.7 billion of free cash flow, and forecasts three-year free cash flow growth of 77% through 2028. The bank also placed Palantir on Positive Catalyst Watch ahead of its Nov. 2 earnings report.
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