New Palantir Price Target After Global AI 'Growth Catalyst'
A highly-ranked analyst has issued a new target price for the artificial intelligence leader.
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I'm taking my leave and taking some profits as well.
Readers will remember that almost a month ago, Peloton Interactive PTON broke down from what had been a rising-wedge pattern of bearish reversal. As I told readers at that time, I had made a chunky sale (at an average price of $6.22) in response to that move. I mentioned at that time that Peloton was wrestling with possibly retaking its 50-day SMA while its 200-day SMA would remain the stock's upside pivot. Remember, the firm does not report until late August.
The stock has come back a bit, but on Wednesday failed badly at its 50-day SMA, after failing to hold that line a rough 10 days ago. Take a look at this:
Yes, I see that PTON looks to potentially make another run at its 50-day SMA ahead of the opening bell on Thursday morning. I don't trust it. I see the share trading close to $6.59 in the early going. I intend to exit the name after you readers get a chance to read this piece and act ahead of me. My net basis on the entire trade is currently $5.73. If $6.59 is where I get out on Thursday, I will have realized a 12% profit on the trade from top to bottom. Not what I was going for, but not a sharp stick in the eye either.
Would I consider re-entering PTON if the earnings go better than expected in about seven weeks or so? Yes.
I would consider re-initiating close to the lows of mid-June ($6.03). I would be more interested in re-initiating on momentum after the stock had taken and held its 200-day line currently at $6.80. Yes, that would mean paying more. It would also in my opinion, be a less risky proposition.
Ives on Palantir (PLTR)
On Thursday morning, 4.5 star rated (by TipRanks) analyst Dan Ives of Wedbush reiterated his "outperform" rating on Palantir Technologies PLTR, which is considered to be a "buy-equivalent" rating. Ives increased his target price from $140 to $160. He cited the firm's leadership position in the AI revolution, adding that recent checks show that the bull thesis for the stock is more likely to play out over the next 12 to 18 months.
The Ives team also explained that new and existing customers across the commercial and government space are literally waiting in line to sign up for multiple aspects of the Palantir tech stack as the company introduces new valuable use cases, with more organizations seeking to drive efficiencies on the back of AI. Palantir is leading this charge.
In Ives' view, Palantir is well positioned for a "new disciplined spending environment and this will ultimately be a positive growth catalyst as Karp & Co. get a bigger seat at the table globally... including across the Middle East with this AI adoption curve now front and center across the region."
The $160 target price for PLTR is now the second-highest target on Wall Street. Second only to yours truly. Our target price still stands at $181. We took that target up from $154 on June 24.
On Deck...
We'll be taking a new look at BlackBerry (BB), most likely next week, as that firm will not be reporting again until late September.
At the time of publication, Guilfoyle was long PTON, PLTR and BB equity.
