Goldman Sachs upgrade to Buy with $230 target; field engineer advantage supports superior performance through 2027.

We take a look at some of the names, and see an upgrade for Palantir stock. I saw Dan Ives making his picks for 2027. That was in the report. He loves Palantir. Oh, he loves her very much.

He loves it for 2027. I saw it on the list. I just thought I'd add that.

Let's talk about Palantir. Those stocks are rising here in early trading. This is a result of more optimistic feelings. This is driven by Goldman Sachs' shift towards optimism regarding Palantir after its weak performance so far this year.

They upgraded Palantir's rating from neutral to buy, with a target price of $230. This means a double-digit increase from yesterday's closing levels, about 18% from yesterday's close.

Keep in mind that the stock has only been up a small percentage year-to-date. It underperformed the S&P 500 and also underperformed its sector. Goldman sees potential for a period of superior performance until 2027.

The argument there is that its businesses and sectors are still in the early stages of employing artificial intelligence with their own data. Therefore, they believe that Palantir has an advantage because it uses field engineers who work closely with customers to solve specific business problems.

This is part of the argument here, which underscores their optimism about this stock now.

They believe that Palantir has an advantage. The test for investors will be whether Palantir can serve more customers without raising costs at the same pace as it expands its business.

The next wave of growth is coming from sovereign artificial intelligence. This is a big part of starting out in Palantir, isn't it? Government contracts. That was her primary source of income for a long time.

Then they began to expand into the commercial sector here. Custom applications where they see some potential. Companies want artificial intelligence tools specifically designed for their operations there.

Therefore, there are some specific and then industry-specific products.

Clearly, Wall Street loves this, with stocks accelerating more and more as we speak, up by more than 4.5 percent now, Nicole. Well, a good move for Palantir.