Shares of Palantir (NYSE:PLTR) stock opened in the green following a price target increase from investment bank and research firm Jefferies. Analyst Brent Thill raised his PLTR price target to $24 from $22 ahead of the company’s first-quarter earnings report on Monday, May 6 after the market close.
Thill last raised his price target to $22 from $13 following Palantir’s Q4 earnings report in February. In January, the analyst lowered his PLTR price target to $13 from $18 after noting that the company was “overhyped” on artificial intelligence (AI) prospects and that its valuation was “unjustifiable.”
From a price target of $13 at the beginning of the year to $24 now, Thill seems to have had a change of heart. The analyst noted that expectations surrounding the company are high given the recent uptick in price. PLTR stock is up by about 35% this year. However, Thill believes that the “1Q setup is still achievable.”
PLTR Stock: Jefferies Raises Price Target to $24
On TipRanks, Thill is ranked at #8,348 among 8,802 Wall Street analysts tracked by the site. He has a success rate of 42% and an average one-year return of -4.70%.
Thill wasn’t the only analyst who began to lean bullish ahead of the big data analytic company’s earnings. Last week, Monness, Crespi, Hardt & Co. analyst Brian White upgraded the company to “neutral” from “sell.”
White expects Palantir to benefit from the AI revolution and geopolitical tensions, although “revenue from government-related contracts has proven lumpy, execution spotty, valuation excessive, and we believe the darkest days of this economic quagmire are ahead of us.” In March, White lowered PLTR’s rating to “sell” from “neutral” with a $20 price target.
Across the board, PLTR carries an average price target of $19.23 among 18 analysts with coverage, implying downside of about 17%. Wedbush has the highest price target at $35 while RBC Capital has the lowest at $5.
For Q1, analysts are forecasting revenue of $618 million, signaling year-over-year growth of 17.58%. GAAP EPS is expected to be three cents, which would mark the sixth consecutive quarter of profitability.
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.
