Is Palantir Technologies Stock a Buy on Analyst Support?

PLTR stock - Is Palantir Technologies Stock a Buy on Analyst Support?

Source: Spyro the Dragon /

Although the fallout from the Russian invasion of Ukraine has been a net negative — obviously for the invaded country but also for global stability — it may also bring some cynical bullishness toward embattled big data analytics firm Palantir Technologies (NYSE:PLTR). Just like the otherwise awful coronavirus pandemic boosted the telehealth industry, PLTR stock could rise because of the geopolitical paradigm shift of the new normal.

That’s according to Monness Crespi Hardt analyst Brian White, who recently initiated coverage of Palantir, rating PLTR stock a “buy” with a $20 price target. Based on the closing price of $12.98 for the April 11 session, this forecast represents an upside of 58%. Given the fresh dangers and complexities that Russian President Vladimir Putin imposed on the world, PLTR seems like a very relevant acquisition.

“Founded with a focus on developing software to support counterterrorism initiatives for the U.S. intelligence community, Palantir has built out a strong presence across a broader scope of government organizations based in liberal democracies and demonstrated success with commercial organizations,” White asserted in a research note.

More ominously, the analyst wrote, “In our view, the conflict in Ukraine showcases the fragility of democracy and the importance for the U.S. (and allies) to maintain a strong military. This includes generous investment in cutting-edge technologies and solutions.”

Although White makes a compelling case for the practicality of PLTR stock, it remains worrying that insiders have been dumping shares — an issue that I have presented frequently. In my view, the selling suggests a lack of confidence in the business directive.

To be fair, though, these insiders are still holding a significant amount of equity in PLTR stock. Furthermore, the dumping has waned in magnitude, implying that speculators have a better chance of now bidding up the price. Nevertheless, it may take time for investors to get rid of the bad taste that Palantir left in their mouth, so prospective buyers should be careful.

On the date of publication, Josh Enomoto did not have (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 Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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