New Higher Palantir Price Target and for 2 Other Holdings
We’re also resetting their panic and pick-up points.
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Following a brisk period of IPO activity and prospects for more in the coming months, we are lifting our price targets for Morgan Stanley MS and Bank of America BAC. We see activity aiding the banking businesses at both firms, with Morgan Stanley benefiting more, given its share of deals and the larger influence of investment banking on its business.
Our revised MS price target is $170, up from $150. Our new panic point level for the shares is at $135, up from $120, and our revised pick-up point is $147, with a more compelling one closer to the 100-day moving average currently near $138. A pullback to that lower level would give us ample reason to revisit our current Two rating, provided the outlook for deal flow remained robust.
Our revised BAC price target is $60, up from $55. Our new panic point level for the shares is $44, up from $39, and our revised pick-up level is near $47, between the current 50-day and 100-day moving averages.
Based on the level of deal flow for both IPOs and M&A activity, we will continue to review and adjust our MS and BAC targets as necessary.
As we make these changes, we note that the RSI levels for both MS and BAC shares have crossed over 70, indicating an overbought condition in both. This means at current levels, we cannot recommend adding shares to your holdings, hence we are sticking with our Two rating for both MS and BAC.
Nudging Our Palantir Price Target Higher… Again
Over the course of the current quarter, we’ve increased our Palantir PLTR price target multiple times and added more shares on August 20 ($154.61) and September 3 ($160.53). We are once again raising our price target, this time to $205 from $200, with the catalyst being the U.K. military buying more than $1 billion in software and services over the coming five years. This will be a nice boost to the company’s remaining performance obligations (RPOs) when it reports its current quarter, extending its multi-year runway.
As we look across the more than 26 price targets published by various Wall Street firms, the vast majority have not been updated since early August. This suggests we could see some catch-up activity in the coming weeks, a potential catalyst for PLTR shares, similar to waht we’ve been seeing for MS and BAC.
As we make this move, we are also resetting our PLTR panic point to $140 from $115, and our pickup point to $163.
At the time of publication, TheStreet Pro Portfolio was long MS, BAC and PLTR.
