Palantir (NYSE:PLTR) stock has not exactly been having a great year, down more than 25% year to date. With the tech sector’s poor price performance in 2022 thus far, Palantir is currently trading close to its 52-week low of $11.75. Does this mean that PLTR stock is a buy right now?
Palantir will report earnings for the fourth quarter on Feb. 17. Ahead of time, the company has provided guidance of 30% annual growth for the next 5 years, which would equate to revenue of at least $6 billion by 2026. However, many investors are concerned about a slowdown in commercial growth. Excluding revenue from special purpose acquisition companies (SPACs), Palantir’s Q3 commercial revenue grew by 22% year over year (YOY). This revenue growth rate represents a decline from Q2’s 25% YOY growth.
Furthermore, CEO Alex Karp released his annual shareholder letter today. The letter addresses several themes, such as the prevalence of software, the company’s relationship with the U.S. government, and the problems that Palantir seeks to address. While no financial updates were provided, investors will surely receive more clarity when Palantir reports earnings.
With Palantir expected to report earnings soon, investors are wondering how Wall Street feels about PLTR stock price predictions. Let’s take a look.
PLTR Stock: 3 Analysts Weigh In On Palantir Price Predictions
- Credit Suisse has a price target of $25. Analyst Phil Winslow believes that Palantir’s Foundry platform could create “significant value” within commercial businesses. Winslow adds that Palantir’s biggest risk is customer concentration. Finally, the analyst notes that he would like to see evidence on the “evolution of Palantir’s go-to-market model to acquire new commercial clients” to become more bullish on the company.
- Jefferies has a price target of $21. Analyst Brent Thill believes that fourth-quarter revenue will increase by 30% YOY. In addition, while acknowledging Palantir’s recent commercial revenue slowdown, the analyst believes that the “next leg of growth will likely be driven by further acceleration from the commercial business.”
- William Blair has a price target between $12 and $16. Analyst Kamil Mielczarek notes that Palantir did not win any significant “new work” during the quarter that ended Sept. 30. Like Thill, Mielczarek is concerned about a slowdown in commercial growth.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.