Key Highlights

● Palantir climbed $10.27 to $209.05 on Friday, a record close according to market data, with about 37.6 million shares traded.

● Barclays analyst Anthony Valentini initiated coverage at Overweight with a $265 target as part of a defense and aerospace launch.

● Goldman Sachs analyst Gabriela Borges reportedly upgraded Palantir to Buy from Neutral with a $230 target, reported by one source.

● Software rebounded as Palo Alto Networks and CrowdStrike gained, while chipmakers Nvidia and AMD lagged.

Palantir Technologies (NASDAQ:PLTR) climbed $10.27 to $209.05 on Friday, a record close. The stock traded between $198.30 and $209.58 during the session, finishing near the top of that range, with about 37.6 million shares changing hands.

The gain came as software stocks rebounded strongly after Thursday's AI-related sell-off. The Nasdaq-100 rose 157.34 points to 30,883.15, the Nasdaq Composite added 172.83 points to 27,366.17 and the S&P 500 gained 46.18 points to 7,811.54.

Two analyst calls

Two pieces of Wall Street research were in focus. One market report said that Goldman Sachs (NYSE:GS) analyst Gabriela Borges upgraded Palantir to Buy from Neutral with a 12-month price target of $230. That call appeared in only one report.

Separately, Barclays (NYSE:BCS) analyst Anthony Valentini initiated coverage of Palantir at Overweight with a $265 price target, as part of a broader launch of coverage across defense and aerospace companies, according to market reports. The Barclays note was published after Thursday's close.

An upgrade or a fresh Overweight rating signals that an analyst expects a stock to beat the market, and a price target is an estimate of where it might trade. Both targets sit above Friday's close.

The rest of Barclays' sweep

The Barclays launch covered several names beyond Palantir. It initiated SpaceX (NASDAQ:SPCX) at Overweight with a $254 target, Rocket Lab (NASDAQ:RKLB) at Overweight with an $85 target and Lockheed Martin (NYSE:LMT) at Equal Weight with a $554 target, according to a market report. In electric air taxis, it moved Archer Aviation (NYSE:ACHR) to Overweight while downgrading Joby Aviation (NYSE:JOBY) to Underweight.

Software's comeback

Palantir's rise was part of a wider rebound in software. On Thursday, a media report that OpenAI's annualized Revenue was about $50 billion, roughly $20 billion below a figure that had circulated earlier, hit AI-linked stocks. On Friday, a separate media report said OpenAI expects to reach or exceed $70 billion by year-end, and software buyers returned. Palo Alto Networks (NASDAQ:PANW) and CrowdStrike (NASDAQ:CRWD) gained with the Cybersecurity group, Oracle (NYSE:ORCL) rose $6.21 and Microsoft (NASDAQ:MSFT) added $12.46. Chipmakers lagged, with Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) lower.

Palantir builds Data Analytics and AI software used by government agencies, including defense and intelligence customers, and by commercial clients. That mix places it at the intersection of two themes analysts covered on Friday: AI software adoption and defense spending.

Rates still matter

Highly valued Growth Stocks remain sensitive to borrowing costs. The 10-year Treasury Yield held near a 24-year high, and the Fed raised rates in September for the first time since 2023. Fed Governor Christopher Waller said Thursday he anticipates additional hikes to bring Inflation back to the Fed's goal. Deutsche Bank (NYSE:DB)'s George Saravelos said: "The biggest systemic risk in the market next year is not France but 'something going wrong' in the AI ecosystem".

Further Analyst Reaction to the Barclays and Goldman Calls Could Shape Palantir's Next Moves

Stocks trade on Monday, October 12, Columbus Day, while the Bond Market is closed. September consumer prices arrive Wednesday, October 14, with producer prices and retail sales on Thursday. Bank Earnings begin Tuesday with JPMorgan (NYSE:JPM), Goldman Sachs, Citi (NYSE:C) and Wells Fargo (NYSE:WFC). The Fed meets October 27–28, and midterm elections follow on November 3. Taiwan Semiconductor (NYSE:TSM) reports on Thursday, October 15. Further analyst reaction to the Barclays and Goldman calls may shape Palantir's next moves.