Why a longtime skeptic of Palantir’s stock is finally saying it’s time to buy

A longtime bearish analyst has turned constructive on Palantir Technologies, arguing that the company's total addressable market may expand well beyond current expectations while its business model helps it defend its position against competitors.

The shift matters because analyst upgrades — especially from previous skeptics — can influence how the market prices a stock's future prospects. A larger addressable market implies more room for revenue growth over time, while a durable business model suggests the company can hold onto customers and margins as competition intensifies. Together, those factors can justify a higher valuation than a purely cautious view would allow.

For investors, the key takeaway is not the rating change itself but the reasoning behind it. Watch whether Palantir's actual results — revenue growth, customer retention, and contract wins — validate the more optimistic market view. Analyst opinions can move prices in the short term, but fundamentals ultimately determine whether a stock earns its valuation over the long run.