For a stock that rallied 238.46% in the last 6 months to an impressive press time price of $81.57, Palantir (NASDAQ: PLTR) has been a surprisingly contentious topic.
On the one hand, there has been a veritable deluge of positive developments for the company, starting with its inclusion in the benchmark S&P 500 index and covering topics such as major government contracts and the moving of the listing from NYSE to NASDAQ for inclusion in the Nasdaq 100.
On the other hand, Wall Street analysts have been doubtful about the continued growth potential, as many of them estimated that despite Palantir’s significant successes, they were already priced in before the rally.
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The more grim outlook, for a time, appeared correct earlier in December as, after running ‘through all the stop signs’ and hitting a new all-time high (ATH) after a new ATH, the PLTR stock rally appeared to be running out of steam.
By December 20, Palantir shares received a somewhat unexpected – and possibly unwelcome – endorsement when Jim Cramer forecasted a continued strong rally in the final weeks of 2024.
Did Jim Cramer just set the most ambitious PLTR stock price target for December 31?
Specifically, the energetic host of Mad Money and former hedge fund manager, in a rather succinct X post, opined that investors not only ‘want to take Palantir to $100’ but also ‘have the firepower to do it.’
Though lacking in detail, Cramer’s comment was undeniably bullish, as hitting $100 by December 31 would require PLTR shares to rally another 22.6% in but a handful of days.
Considering the stock market will be open for only another 6 days this year, Palantir would have to rally an average of $3 per session. In contrast, during the last 30 days – a period that featured a 23.40% rally – PLTR shares were rising an average of $1.25 per session.
Why $100 remains an unlikely December 31 PLTR stock price target
Looking at the recent analyst rating revisions for Palantir, it is evident that the distance to $100 is not the only factor that renders Jim Cramer’s estimate plausible.
Indeed, all three December reassessments led either to a ‘neutral’ or ‘sell’ rating, and all featured price targets that range from conservative to bearish.
On December 12, Baird forecasted Palantir stock would stand at $70 in 12 months’ time and explained it is ‘neutral’ on the equity. One day later, Mizuho Securities reiterated its previous ‘sell’ rating and, despite raising the price forecast from $37, it nonetheless landed at an exceedingly bearish $44.
Finally, on December 19, UBS confirmed it remains ‘neutral’ about PLTR shares but provided the highest price target of the month: $80.
Featured image via Shutterstock
