Are Wall Street Analysts Predicting Palantir…

Are Wall Street Analysts Predicting Palantir Technologies Stock Will Climb or Sink?

Denver, Colorado-based Palantir Technologies Inc. (PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. It provides software platforms that offer identification of hidden patterns, deployment of software in different environments, and more. With a market cap of $97.8 billion, Palantir's operations span North America, the U.K., and internationally.

Palantir has substantially outperformed the broader market over the past year. PLTR stock prices have soared 142.1% on a YTD basis and skyrocketed 182.9% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 19.6% gains in 2024 and 36.9% returns over the past year.

Narrowing the focus, Palantir has also outpaced the SPDR S&P Software & Services ETF’s (XSW) 10.4% gains on a YTD basis and 40.7% returns over the past 52 weeks.

The massive surge in PLTR stock has been primarily fueled by the growing demand for Palantir’s Artificial Intelligence Platform (AIP), which has continued to attract numerous clients and drive revenue growth.

PLTR soared 10.4% in the trading session after the release of its impressive Q2 earnings on Aug. 5. The company reported a 27.2% year-on-year and 6.9% sequential surge in revenues, reaching $678.1 million. Plus, it closed 27 deals of over $10 million while reporting a 41% year-over-year growth in customer count.

For the current fiscal year, ending in December 2024, analysts expect Palantir to report a 137.5% year-over-year growth in adjusted EPS, reaching $0.19. The company’s earnings surprise history has been mixed. It has surpassed or matched Wall Street’s EPS estimates twice over the past four quarters while missing on two other occasions. Its adjusted EPS of $0.03 for the last reported quarter missed the estimates by 25%.

PLTR stock has a consensus “Hold” rating overall. Among the 14 analysts covering the stock, two advise “Strong Buy,” six recommend “Hold,” one has a “Moderate Sell,” and five suggest a “Strong Sell” rating.

This configuration is bearish compared to three months ago when three analysts recommended a “Strong Buy,” and one advised a “Moderate Buy” rating.

On Oct.17, Mizuho analyst Gregg Moskowitz maintained an “Underperform” rating on PLTR while raising the price target to $30.

Palantir is trading above its mean price target of $27.14. However, the Street-high target of $50 suggests a potential upside of 20.3% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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