We're Lifting Our Palantir Price Target Ahead of Earnings, But Keep This in Mind...
Our latest boost comes ahead of Palantir’s quarterly results on May 5 — and with a note of caution.
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We are once again lifting our price target on one of the Pro Portfolio’s newer positions, Palantir Technologies PLTR.
Earlier this month, we boosted our PLTR target to $105 from $95 following the company’s NATO program win. Our latest boost, which comes ahead of Palantir’s quarterly earnings report on May 5, stems in part from the company’s collaboration with Google GOOGL Cloud to bring FedStart platform to public sector customers. It also has to do with the shrinking prospect of DOGE-related cuts and the potential for a larger than previously expected defense spending program. That combination, plus other wins noted in recent weeks, is leading us to lift our PLTR target to $125 from $105.
Based on what we see in the company’s earnings report next week, and what we could hear at its next AIPCon event, we’ll revisit our target as needed.
That’s the good news.
In the above chart, you can see the strong move in PLTR stock, which has benefited the Pro Portfolio very nicely, but also has it knocking on the door of being overbought. For this reason, we are reiterating our Two rating.
We’ll also note the recent strong performance in the shares as well as the robust outperformance year to date (up more than 50% vs. the 5.4% drop in the S&P 500 and the 9.5% fall in the Nasdaq Composite) have likely raised the bar that much further for the company’s upcoming earnings report.
The Pro Portfolio’s PLTR position is on the smaller side, and being the disciplined investors we are, we would be open to using any meaningful pullback in the stock to add to our holdings. With that in mind, we’ll keep close tabs on PLTR and key support levels seen in the above chart.
At the time of publication, TheStreet Pro Portfolio was long PLTR.
