Palantir Stock Offers ‘One of a Kind Growth.’ Should You Buy PLTR Here?

Palantir (PLTR) shares are extending gains today after a Piper Sandler analyst initiated coverage of the big data analytics firm with an “Overweight” rating. 

In his research note, Brent Bracelin announced a $170 price target on PLTR, indicating potential upside of another 8% from here. 

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Bracelin’s bullish call is significant given Palantir stock is already up some 150% versus its year-to-date low set in mid-January. 

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Piper Sandler Downplays Valuation Concerns in Palantir Stock

Brent Bracelin agreed that a forward price-earnings (P/E) multiple of more than 400x on PLTR shares makes them a “high-risk” investment. 

But investors should own them, nonetheless, since they offer a “one-of-a-kind growth plus margin model that if proven durable could grow into a $24 billion run-rate by 2032,” his reported added. 

The Piper Sandler analyst dubbed Palantir stock’s explosive rally over the past three months a “rise of the phoenix moment,” emphasizing that valuation alone shouldn’t define this AI “all-star.” 

PLTR Shares Could Extend Gains After Q2 Earnings on August 4

On Friday, the investment firm also dubbed Palantir shares a “secular winner” within the artificial intelligence space. 

According to Brent Bracelin, the Nasdaq-listed firm will push further to the upside as it continues to gain share “across two $1-plus trillion total addressable markets.”

Piper Sandler’s bullish note arrives only a week before PLTR is scheduled to report its earnings for the second quarter. Consensus is for the company to earn $0.08 on a per-share basis, more than 150% higher than the $0.03 a share it earned in the same quarter last year. 

If the Denver-headquartered firm beats these estimates, it could validate Piper Sandler’s positive view and trigger another leg up in PLTR stock. 

Wall Street Recommendation: Pull Out of Palantir Now

Investors should note, however, that other Wall Street firms recommend pulling out of PLTR shares following their meteoric rally since early April. 

The consensus rating on Palantir stock currently sits at “Hold” only with the mean target of about $107 indicating potential downside of more than 30% from current levels. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.