Palantir wavered Thursday despite a price target hike from Wedbush analyst Dan Ives, a prominent Palantir stock bull, who pointed to "bears in the hibernation cave."
Palantir shed a fraction to close at 142.50, snapping a five-day winning streak. Ives, who has an outperform rating on Palantir, raised his price target to $160 from $140, citing "growing confidence in the company's AI strategy."
"We believe Palantir has a 'golden path to become the next Oracle' over the coming years," Ives wrote in a client note.
But the Thursday dip appeared to underline a lingering concern that Palantir is overvalued.
There are "Bears in the hibernation cave trying to say it's the top," Ives told Investor's Business Daily. But Ives reaffirmed his belief in a stock he compares to the famous football star, Lionel Messi. "We believe it's the path to $1 trillion for the Messi of AI."
Palantir recently got a boost from major moves, including an initiative to help speed up U.S. Navy operations, and an AI partnership with Accenture (ACN) to streamline the federal government.
Palantir stock has risen more than 85% this year. The shares have a Relative Strength rating of 98, down from 99 a week ago, according to IBD MarketSurge.
