Investors in once-meme stock Palantir (NYSE:PLTR) are getting some love from Wall Street today. An analyst target price upgrade from Mizuho has sent shares of PLTR stock more than 6% higher at the time of writing.
Now, this analyst note didn’t result in an overall upgrade, with Mizuho analysts maintaining a “neutral” rating on the stock. However, a move from a target price of only $8 per share to a $14 per share price target has been enough to spark investor interest in this stock. Notably, this level is still below where PLTR stock trades today. But it’s a step in the right direction toward tilting sentiment from analysts on the company.
Palantir is among the most mixed companies Wall Street analysts remain split on. With three “buy” ratings, six “hold” ratings, and five “sell” ratings, there’s quite the spread for investors to choose from in terms of opinions. Perhaps the bull/bear debate on this stock isn’t one that’s confined to retail investors.
Let’s dive into what to make of this news today and the spike we’re seeing in Palantir.
PLTR Stock Surges as Wall Street Grows More Bullish
Palantir has been a somewhat divisive stock in recent years for several reasons.
First, this stock participated in previous meme rallies, surging to levels most conservative investors would consider to be astronomical. However, after settling down to lows well below $10 per share last year, the stock has since rebounded to around $17.50 today.
That’s an impressive move and one that Mizuho analyst Matt Broome believes could be due to the company’s announced artificial intelligence (AI) ambitions. Indeed, any stock that merely mentions artificial intelligence seemingly receives a premium in this market. Thus, for those betting on short-term enthusiasm spouting up again, this is one key catalyst that could drive bullish sentiment around PLTR stock.
The full extent of Palantir’s ability to utilize AI within its core business remains unknown. But given the big data capabilities Palantir has shown in the past, this wouldn’t be a substantial leap for investors. Accordingly, we’ll have to see how such implementations may or may not impact the company’s earnings moving forward. If there’s a reasonable and meaningful uptick, this is a stock that could have more room to run from here, at least over the medium term.
On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.
