The share price of American software company Palantir Technologies (NYSE: PLTR) has had a remarkable week following the company’s stronger-than-expected earnings report.
In particular, Palantir’s performance was clearly positive in the second quarter earnings report, showing significant revenue growth and new customer acquisitions. At the same time, the company continues to see robust growth in its customer base, with a focus on commercial customers, leading to higher revenues and increased profitability.
Specifically, Palantir’s revenue reached $678 million in the quarter, while adjusted operating income rose to $254 million. In addition, the company raised its full-year guidance, reflecting its strong confidence in future growth.
In fact, PLTR has emerged as a major beneficiary of this momentum, rising over 38% in the past seven days. As of the close on August 9, the stock was valued at $30, representing a 24-hour gain of over 3%. In addition, Palantir’s move into artificial intelligence (AI) has been a major catalyst in 2024, with PLTR up over 80% year-to-date.
Analysts set PLTR share price
Amid this bullish momentum, analysts have presented their forecasts for Palantir stock performance over the next 12 months. Sixteen Wall Street analysts TradingView Prediction: PLTR is likely to correct itself over the next 12 months and trade at an average price of around $24.63.
This forecast represents a significant potential decline of 17.93% from the current trading price of $30.01. The estimate covers a wide range of outcomes and reflects the company’s uncertain market outlook.
The highest target for next year is $38, which represents an optimistic increase of 26.62%, while the lowest forecast predicts a dramatic drop to $9, representing a potential drop of 70.01%.
Despite these differing views, the overall sentiment among analysts is leaning toward neutral. Of the 23 analysts who have covered the stock over the past three months, the majority recommended holding it, while six analysts recommend a strong buy and three recommend buying it.
On the other hand, from a pessimistic perspective, there are seven analysts who recommend a solid sell and one who recommends a sell.
The basics of Palantir
Although analysts are forecasting a pessimistic outlook for the stock, the stock has the potential to sustain its current momentum if Palantir shows the ability to maintain these high levels of performance, especially in its high-growth U.S. commercial segment. In fact, the positive momentum is likely to continue if Palantir’s partnerships, such as the one with Microsoft (NASDAQ: MSFT), work out.
In addition, investors should keep an eye on the company’s innovation focus and watch for signs of valuation pressure.
In summary, not only do these fundamentals play a crucial role, but the stock is also vulnerable to prevailing economic factors, such as concerns about a possible recession in the United States.
Disclaimer: The content on this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.
