Wedbush analyst Daniel Ives has increased his price target for Palantir Technologies (PLTR) stock ahead of the company’s upcoming third-quarter report, set to be released after the market closes on November 3. He has maintained a buy rating, raising the target to an all-time high of $230, which reflects a potential upside of about 14.7%.
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In premarket trading, PLTR stock saw a rise of more than 2% following this announcement. Ives, a long-time supporter of the company, remains optimistic about Palantir’s growth, highlighting the “trillion-dollar potential” associated with its artificial intelligence platform (AIP).
Ives is recognized as a 5-star analyst on TipRanks, holding the #323 position out of over 10,000 analysts. His success rate stands at 56%, with an average return of 16.70% per rating.
Ives is confident in Palantir’s third-quarter victory.
He mentioned that the forthcoming earnings and outlook could represent another significant milestone for CEO Alex Karp and his team as they enhance Palantir’s AI capabilities. Although there may be some investor concerns regarding valuation, Ives believes that Palantir is on a path to achieving a $1 trillion market cap in the next two to three years. He anticipates that this expansion will occur as Palantir develops its commercial operations into a multibillion-dollar entity poised to benefit from the AI revolution.
Ives also pointed out the “unprecedented demand” for Palantir’s AIP, suggesting that Wall Street’s projected revenue estimates could be easily surpassed. He noted that customer feedback indicates the company’s bootcamps deliver significant value and actionable AI insights, which contribute to swifter sales cycles. Furthermore, he emphasized Palantir’s increasing momentum within the federal sector.
As for expectations, analysts predict that Palantir will report adjusted earnings per share (EPS) of $0.17, with revenue reaching $1.09 billion. These figures represent a strong improvement compared to last year’s EPS of $0.10 and revenue of $725.52 million.
Is Palantir a good stock to buy?
However, not all analysts share Ives’ positive outlook on Palantir, raising concerns about its elevated valuation. Since the start of the year, PLTR stock has surged over 165%.
According to TipRanks, the consensus rating for PLTR stock is a Hold, based on 4 Buys, 13 Holds, and 2 Sells. The average price target for Palantir stands at $158.41, indicating a potential downside of nearly 21% from current prices.
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