As Palantir Technologies’ (NYSE: PLTR) share price establishes itself convincingly above the $30 support, market attention remains focused on whether the equity has further upside ahead.
The stock has recently been dominated by bullish sentiment, mainly due to the company’s involvement in artificial intelligence (AI), inclusion in the coveted S&P 500 index, and impressive Q2 2024 earnings results.
During the second quarter, the software giant recorded a 41% growth in customer count to 593, while revenue increased 27% to $678 million. Based on these results, CEO Alex Karp projected that Palantir will likely sustain this momentum, citing high demand for software and its ability to make artificial intelligence capabilities useful.
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PLTR stock 2025 outlook
With 2025 on the horizon, it remains to be seen if these fundamentals will catalyze further growth. Indeed, some analysts believe the company’s product offerings could be a key driver for sustained bullish momentum in the coming months.
Forrester Research, for instance, pointed out that Palantir’s Artificial Intelligence Platform (AIP) is a leading player in the AI and machine learning space, likely to trigger market interest. The experts noted that 14 vendors have recognized Palantir’s AIP as a top product with strong data ingestion and preparation capabilities, beating giants like Microsoft (NASDAQ: MSFT).
Bank of America (NYSE: BAC) has also expressed bullish sentiments, maintaining that PLTR is likely to trade at $50 and reiterating a ‘buy’ rating in an analysis on September 16.
According to BofA analyst Mariana Perez, Palantir’s inclusion in the S&P 500 is a watershed moment that will bring institutional capital into PLTR. BofA also believes there is a significant opportunity for revenue growth, noting that Palantir will likely emerge as the standard data operational system for the U.S. government.
On the other hand, Deutsche Bank’s Brad Zelnick maintains a ‘Strong Sell’ rating on the stock, predicting that PLTR will likely trade at $21 in the next 12 months. Although Zelnick acknowledged the significance of Palantir’s strong Q2 2024 performance, he warned that the stock’s price already reflects the company’s bullish attributes.
Meanwhile, Citi (NYSE: C) analyst Tyler Radke provided a ‘Neutral’ rating for Palantir on September 11, with a price target of $30. Citi’s outlook was influenced by what the banking entity termed the “lumpy” nature of the government business due to uncertainties related to the upcoming elections and the early stages of AIP monetization.
Wall Street consensus on PLTR stock
Away from the individual analysis, consensus from 15 Wall Street analysts at TipRanks projects a downside for PLTR in the next 12 months with an average price target of $27, a drop of 25% from the current valuation. The experts have a high forecast of $50, while the lowest target is $9. Most experts at six recommend selling the stock.
PLTR was trading at $36.5 as of press time, gaining about 0.6% in the last 24 hours. Over the past week, the stock has rallied over 7%. Following the company’s inclusion in the S&P 500 Index, Palantir has risen by over 20%, propelling the software firm’s valuation to a market capitalization of $81 billion.
PLTR stock technical outlook
A review of technicals shared by charting platform TrendSpider observed that following PLTR’s momentum from its S&P 500 inclusion, the stock will likely push upward, fueled by renewed investor interest and a bullish technical setup.
The analysis indicated that the stock is an ‘absolute runaway train,’ highlighting a breakout from a well-formed bull flag pattern, often seen as a signal of strong upward momentum following a period of consolidation.
In conclusion, despite the current trajectory, Palantir stock is positioned at a monumental juncture. Strong momentum is driven by its S&P 500 inclusion, robust Q2 2024 results, and increasing demand for its AI platform.
While bullish analysts foresee growth potential, others remain cautious, highlighting potential risks. As 2025 approaches, the stock’s performance will depend on whether Palantir can maintain its current momentum and capitalize on its strategic opportunities, mainly in AI and its ability to attract government business.
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