Palantir’s share surge bends Wall Street’s view
Wall Street’s well-entrenched skepticism on Palantir’s share price is bending under the stress of the stock’s remarkable continued surge.
The stock is up more than 20% this week after busting through analyst expectations in its Q4 earnings report Monday.
(The rise has generated roughly $40 billion in market cap and paper wealth.)
Since the numbers were released, several analysts have conceded that the share price can keep going higher over the short term, despite tough-to-justify valuations.
As a result, Wall Street’s consensus target rating on the shares has risen from about $45 at the end of December to almost $87 on Wednesday, which is about 15% below where the stock is trading as of writing.
But analysts — for the most part — are dragging their feet on taking the larger step of upgrading the stock to a “buy.” Just 5 of 23 analysts captured by FactSet data are sufficiently bullish to do so, though that’s two more than a month ago.
Since the numbers were released, several analysts have conceded that the share price can keep going higher over the short term, despite tough-to-justify valuations.
As a result, Wall Street’s consensus target rating on the shares has risen from about $45 at the end of December to almost $87 on Wednesday, which is about 15% below where the stock is trading as of writing.
But analysts — for the most part — are dragging their feet on taking the larger step of upgrading the stock to a “buy.” Just 5 of 23 analysts captured by FactSet data are sufficiently bullish to do so, though that’s two more than a month ago.
