Though Palantir’s (NASDAQ: PLTR) press time price of $79.93 certainly means it can’t be said the stock has crashed and burned, it is experiencing a deep correction.
After soaring as high as $124.62 on February 18, PLTR collapsed 35.86% by press time.
However, the steep downturn has not triggered a reaction among Wall Street analysts, who have not seen it fit to revise their previous bullish price target and those who have proved equally bullish after the plunge.
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Wall Street analysts stay silent amidst stock market turmoil
Specifically, Wedbush’s most recent reassessment, provided on March 3, simply confirmed that PLTR shares are still expected to climb to $120 and that investors would be wise to ‘buy’ the stock.
Still, such a forecast may not be surprising as it was made by Dan Ives, a respected analyst who is increasingly gaining a reputation for being bullish no matter what.
What may be somewhat more surprising is that all prominent firms that gave a bullish assessment of Palantir ahead of its February high have, so far, stuck with their targets.
Of these, Citi’s (NYSE: C), HSBC’s, and DA Davidson’s February 4 revision are, perhaps, the starkest as they featured forecast increases from $42 to $110, from $38 to $96, and from $47 to $105, respectively.
Simultaneously, Jefferies, Mizuho, Goldman Sachs (NYSE: GS), and Northland Capital’s revisions on the same day all appear to have hit the mark, as they set their sights on a range between $60 and $80.
Elsewhere, if the bulls have remained adamant, so have the bears, and RBC Capital has yet to adjust its $40 price target or Deutsche Bank’s $50 forecast.
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Looking at PLTR shares’ performance and broader economic factors, it is difficult to blame the Wall Street analysts for remaining tight-lipped amidst the turmoil.
In many ways, Palantir remains a strong contender with a robust technological offering, justifying the optimism. On the other hand, not only does its revenue size maintain valuation concerns, but its growth case may have been removed in recent weeks with President Donald Trump’s plans to cut military spending.
Palantir relies heavily on its lucrative contracts with the federal government and the Department of Defence (DoD) in particular.
Simultaneously, the technology firm might be spared the brunt of the cuts as the U.S. military appears set to keep heavily investing in a series of strategic sections and in maintaining its technological edge.
Additionally, reassessing Palantir’s prospects under the prevailing circumstances is arguably a thankless task as, amidst the flurry of President Trump’s executive orders, his frequent course changes, political curveballs, and sporadic opposition from the other government branches – most notably the judiciary – it is exceptionally difficult to tell what is ahead for the economy as a whole, let alone for specific actors within it.
One doesn’t have to look much further than Friday and Monday trading – and the surge and collapse many stocks and cryptocurrencies experienced – to see that volatility is the only stable factor in the market in early March.
Featured image via Shutterstock
