Palantir Technologies (NYSE: PLTR), initially funded by the CIA and other intelligence agencies, is now making significant strides in the private sector, positively impacting its stock performance. The company had an IPO in 2020 at $10 per share, and Palantir’s stock price today trades at just under $22.
Founded in 2003 for government risk assessment analytics, Palantir expanded into business analytics due to the vast data businesses generate and the more significant market opportunity. Although most revenue still comes from the public sector, the private sector’s potential is substantial.
In the first quarter, government sales made up 52% of Palantir’s $634 million revenue, with growth increasing from 11% to 16%. Commercial revenue decreased from 70% to 40%. Despite substantial growth, Wall Street questions the sustainability of private sector expansion and whether Palantir stock can reach a $30 valuation.
Picks for you
Most analysts don’t see much of an upside for PLTR
Despite Palantir Technologies consistently beating analysts’ earnings expectations, Wall Street remains skeptical about PLTR stock’s potential surge over the next 12 months.
Bank of America’s Mariana Perez Mora believes Palantir is ‘uniquely positioned to capture the growing commercial and government demand for AI products.’ Perez Mora rates the stock a ‘buy,’ with a price target of $28, implying a 36% increase from its current price.
On May 7, Citi updated its outlook on Palantir, raising the price target from $23 to $25 while maintaining a ‘neutral’ rating. This change reflects a more optimistic view of the company’s US commercial business and profitability.
Similarly, on May 7, HSBC‘s Stephen Bersey increased his price target for Palantir from $22 to $23, a 4.5% rise, while maintaining a ‘hold’ rating on the stock.
Only one analyst sees PLTR stock above $30
On May 6, ahead of Palantir Technologies’ quarterly report, Wedbush maintained its ‘outperform’ rating and $35 price target on the company.
The firm anticipated a strong quarter for Palantir, driven by the performance of its US commercial segment.
This rating is a stark contrast to the industry-wide average of $21.89, indicating an increase of 64.78% from the current price level of PLTR stock.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
