UBS has initiated coverage of Palantir Technologies with a Neutral rating and an $80 price target, citing strong fundamentals but challenging valuations at 49x revenue and 124x free cash flow for 2025. While the company is well-positioned for AI-driven growth, analysts prefer to wait for a better entry point due to the steep valuation, despite projecting revenue growth of 28% in 2025. Palantir's impressive year-to-date performance, with shares up 333%, has attracted significant investor interest, particularly from institutional investors.