Despite its stellar success in 2024, and particularly in the second half of that year, Palantir (NASDAQ: PLTR) remains a deeply divisive asset. On the one hand, it is impossible to doubt the incredible stock market rally it has enjoyed, on the other, many have noted it has become unjustifiably expensive.
On January 30, 2025, the duality of Palantir shares once again became evident with the new price target revision offered by Jefferies Brent Thill.
Specifically, though Thill acknowledged that the technology giant’s fundamentals remain robust, he reiterated the previous ‘underperform’ – ‘sell’ – rating while forecasting a shocking 64.9% stock price drop in the coming 12 months.
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According to the analyst, PLTR’s fair valuation stands closer to $28 than its press time price of $79.76 once the next twelve months (NTM) revenue metric is used. Specifically, Palantir stock is trading at fifty times its NTM revenue making it, by most accounts, severely overvalued.
Are the Palantir bears finally capitulating?
Elsewhere, Jefferies’ recently reiterated stance appears to be slowly moving into the minority. Though the averages of all price targets assigned in the last 90 days still paint PLTR as a stock set for a significant correction, assessments made in 2025 have been increasingly bullish.
For example, despite maintaining a ‘neutral’ rating on January 17, Cantor Fitzgerald opted for a relatively bullish forecast of $72. Just days later, on January 23, Wedbush raised its price target to $90 and reiterated a ‘buy’ rating.
It is worth pointing out, however, that despite enjoying an overall good reputation, Wedbush – and particularly Dan Ives – has become something of a ‘permabull,’ as they have been providing for months the most optimistic interpretation of most stock market events.
Near the same time, another prominent analyst – Jim Cramer – opined that ‘nothing can stop Palantir, nothing,’ indicating his strong belief in the continued rally, as Finbold reported on January 23.
Finally, it is also noteworthy that Jefferies’ is not the lone Palantir bear of 2025 as, on January 8, Deutsche Bank raised its price forecast, but only to a modest $35.
Palantir stock market rally leaves little wiggle room to PLTR bears
Looking at PLTR stock market performance, the slow capitulation of the bears appears in line with the price fluctuations.
Palantir has been widely considered overpriced and ready for a correction since it began its rally following the news it would be included in the S&P 500 but has managed a 202.46% increase instead in the last six months.
A similar situation is evident in the 2025 market. So far, Palantir has remained 6.08% in the green despite the January volatility and is, at press time, changing hands at $79.76.
Featured image via Shutterstock
