For weeks, there has been a growing divergence between investors’ and analysts’ attitudes about Palantir (NYSE: PLTR).
The technology giant has been relentlessly advancing in the stock market, and PLTR shares are 14.93% in the green in the last 30 days. In fact, with their press time price of $41.85, Palantir shares are just shy of their all-time high (ATH) levels, which were reached just days earlier.
Simultaneously, Wall Street experts have, for the most part, been turning negative on the stock, with most citing the seemingly overly bullish growth expectations as the main concern.
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Mizuho Securities – a firm that revised its target on October 17 – does much to exemplify this approach.
Mizuho upgrades Palantir stock price target but remains bearish
Indeed, the reassessment saw Mizuho’ Greg Moskowitz upgrade its PLTR stock price target by 25% – from $24 to $30 -explaining that it expects strong figures from Palantir’s upcoming earnings report.
Still, the increased stock forecast did not change the overall rating, which remains firmly set at ‘underperform’ – ‘sell’ – with Moskowitz’s justification being that the technology giant needs to continue strengthening its execution and growth long-term before being considered ‘neutral’ or a ‘buy.’
This argument is fairly common on the Street, as multiple experts have been simultaneously impressed by what Palantir has already achieved but believe the company’s successes are already more than reflected in its stock price.
Such uncertainty that the rally can be sustained with current force is also evident in PLTR shares’ short interest. As Finbold reported on October 11, there has been a notable 45% surge in the number of shares shorted between September and October.
Some experts remain highly bullish about Palantir stock
Elsewhere, Palantir’s rise in the stock market – a rise that ensured PLTR is up 152.43% year-to-date (YTD) – serves as a testament to its broad support among investors.
Though the most recent rally was largely spurred by the company’s inclusion in the benchmark S&P 500, it traces its roots to Palantir’s involvement with the artificial intelligence (AI) boom, as well as numerous public and private sector contracts.
Furthermore, multiple analysts have been going against the broader trend and assessing the tech firm as a ‘strong buy.’ In September, Bank of America (NYSE: BAC) made an argument that most experts underestimate Palantir in a similar way to how XX-century companies underestimated the potential of mobile phones.
More recently – in late September – Wedbush’s Dan Ives set his PLTR target at $45 and rated the stock as a ‘buy. The prominent technology bull emphasized Palantir’s expansion potential, describing its market position as particularly strong, calling it the ‘Messi of AI.’’
