Today, investors in Palantir (NYSE:PLTR) and PLTR stock are holding onto their gains from yesterday’s double-digit rally. Indeed, a flat day is a good day, following yesterday’s major gains.
The main reason for the rapid increase yesterday was the company’s rather impressive earnings. Palantir reported revenue growth of 49% for the second consecutive quarter. With this level of top-line growth typically reserved for hypergrowth stocks, Palantir’s valuation has understandably received a boost.
Indeed, the case can be made that Palantir should be included in such a stock grouping. The company’s focus on providing big data and analytics solutions to mainly government clients has proven to be lucrative. In addition to Palantir’s revenue growth, the company reported a loss that narrowed to seven cents per share. This is compared to a loss last year that amounted to 17 cents per share. Additionally, adjusted net income came in positive, something investors have been looking for.
Another key factor investors have pointed to with PLTR stock is the company’s total contract value bookings. This metric soared 175% year-over-year, to $925 million. Free cash flow guidance was upgraded to more than $300 million, representing a doubling of the company’s previous estimate.
Accordingly, investors have rightly bid up shares of PLTR stock. Let’s take a look at where the experts think this stock could be headed.
PLTR Stock Price Predictions
For reference, PLTR stock currently trades at $24.96, at the time of writing.
- Palantir bull Brent Thill places a buy rating on PLTR stock, with a $30 price target.
- RBC Capital’s Rishi Jaluria rates the stock a hold, with a $25 price target.
- Additionally, Alex Zukin of Wolfe Research rates PLTR stock a hold. Mr. Zukin lists a target price of $25 per share as well.
- Keith Weiss of Morgan Stanley is bearish on Palantir. He rates the stock a sell, with a price target of $22 per share.
- Among the more bearish analysts is Kamil Mielczarek of William Blair. Mielczarek rates PLTR stock a sell, with a price target of $17 per share.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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