In recent weeks, a distinct divide has emerged between the viewpoints of investors and analysts concerning Palantir (NYSE: PLTR).
The tech powerhouse has been making noteworthy gains in the stock market, with PLTR shares rising 14.93% over the last month. Currently trading at $41.85, Palantir’s stock is approaching its all-time high (ATH), achieved just days ago.
Conversely, Wall Street analysts have largely adopted a more cautious outlook on the stock, primarily driven by worries about what they see as overly optimistic growth forecasts.
An example of this trend is Mizuho Securities, which revised its target on October 17.
Mizuho raises Palantir stock price target while keeping bearish outlook
Mizuho’s Greg Moskowitz led the revision, increasing the PLTR stock price target by 25% from $24 to $30, based on anticipated strong earnings in Palantir’s forthcoming report.
Despite this target uplift, the overall rating remains firmly at ‘underperform’ – effectively a ‘sell’ recommendation. Moskowitz emphasized that Palantir needs to improve its execution and long-term growth potential before it can be upgraded to ‘neutral’ or ‘buy’ status.
This perspective is shared by several Wall Street experts, who, while impressed by Palantir’s progress, believe that these advancements are already factored into the existing stock price.
Concerns regarding the durability of the recent upturn are reflected in the increasing short interest in PLTR shares. As reported by Finbold on October 11, there was a significant 45% rise in the number of shares being shorted between September and October.
Some analysts maintain a highly bullish outlook on Palantir stock
Meanwhile, Palantir’s rise in the stock market—illustrated by a 152.43% year-to-date (YTD) increase—shows strong support from investors.
Though the recent surge was largely driven by the company’s inclusion in the prestigious S&P 500, its growth trajectory can also be attributed to Palantir’s involvement in the artificial intelligence (AI) surge, along with multiple contracts from both public and private sectors.
Moreover, several analysts have taken a counterposition, branding the tech firm as a ‘strong buy.’ In September, Bank of America (NYSE: BAC) suggested that many experts are underestimating Palantir’s potential, similar to the historical miscalculation by companies regarding mobile phone capabilities in the 20th century.
In a more recent assessment from late September, Wedbush’s Dan Ives set a price target for PLTR at $45, categorizing the stock as a ‘buy’ and highlighting Palantir’s ample growth potential, describing its market presence as exceptionally strong and referring to it as the ‘Messi of AI.’
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