Over the past few weeks, a noticeable gap has emerged between the perspectives of investors and analysts regarding Palantir (NYSE: PLTR).
The technology leader has been making significant strides in the stock market, with PLTR shares gaining 14.93% over the past month. Currently priced at $41.85, Palantir’s shares are nearing their all-time high (ATH), which was recorded just days ago.
In contrast, analysts on Wall Street have generally shifted towards a more pessimistic view on the stock, primarily due to concerns over what they perceive as excessively optimistic growth projections.
Mizuho Securities, which adjusted its target on October 17, is a prime example of this trend.
Mizuho raises Palantir stock price target yet maintains bearish stance
The revision led by Mizuho’s Greg Moskowitz saw the PLTR stock price target elevated by 25% from $24 to $30, citing expectations for strong earnings figures in Palantir’s upcoming report.
Despite the upgraded target, the overall rating has remained firmly at ‘underperform’ – a position defining it as a ‘sell.’ Moskowitz pointed out that Palantir must continue to enhance its execution and long-term growth potential before it can shift to a ‘neutral’ or ‘buy’ status.
This sentiment is echoed by several experts on Wall Street, who find themselves impressed by Palantir’s achievements yet believe that these successes are already reflected in the current stock price.
Concerns regarding the sustainability of the recent rally are evident in the rising short interest of PLTR shares. As reported by Finbold on October 11, there was a substantial 45% increase in the number of shares being shorted between September and October.
Certain analysts hold strong bullish views on Palantir stock
At the same time, Palantir’s ascent in the stock market—evident in a 152.43% year-to-date (YTD) increase—demonstrates solid backing from investors.
While the recent surge was substantially fueled by the company’s addition to the prestigious S&P 500, its growth can also be traced back to Palantir’s engagement with the artificial intelligence (AI) boom, alongside numerous contracts from both public and private sectors.
Moreover, several analysts have taken a contrarian stance, labeling the tech firm as a ‘strong buy.’ In September, Bank of America (NYSE: BAC) indicated that many experts are undervaluing Palantir, paralleling the historical misjudgment of mobile phone potential by companies in the 20th century.
In a more recent evaluation – from late September – Wedbush’s Dan Ives set his price target for PLTR at $45 and classified the stock as a ‘buy,’ remarking on Palantir’s significant potential for expansion and citing its market position as exceptionally robust, referring to it as the ‘Messi of AI.’
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