Wedbush analyst Daniel Ives raised his price target on Palantir Technologies (PLTR) stock right ahead of its third-quarter earnings, due for release after the market closes on November 3. He maintained his “Buy” rating, while lifting the price target to a new Street-high of $230 (up from $200), implying 14.7% upside potential.
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PLTR stock is up more than 2% in pre-market trading in reaction to this news. Ives, a long-time bull on the company, continues to back Palantir’s growth story, citing its “trillion-dollar potential” driven by the success of its Artificial Intelligence Platform (AIP).
Ives is a five-star analyst on TipRanks, ranking #323 out of 10,109 analysts tracked. He has a 56% success rate and an impressive average return per rating of 16.70%.
Ives Is Confident of Palantir’s Q3 Beat
Ives noted that Monday’s earnings and guidance could mark another major milestone for CEO Alex Karp and his team as they expand Palantir’s AI capabilities. While some investors may remain concerned about valuation, he believes Palantir is on track to reach a trillion-dollar market cap within two to three years. He expects this growth to come as Palantir scales its commercial operations into a multi-billion-dollar enterprise positioned to capitalize on the AI revolution.
Ives also noted that Wall Street’s consensus revenue forecast appears easily “beatable” given the “unprecedented demand” for Palantir’s AIP. According to him, customer feedback shows that Palantir’s bootcamps deliver exceptional value and practical AI insights, resulting in faster sales cycles. He also underscored Palantir’s growing momentum across the federal sector.
For reference, the Street expects Palantir to report adjusted earnings per share (EPS) of $0.17 on revenue of $1.09 billion. These figures compare highly favorably to prior-year quarter figures of EPS of $0.10 and revenue of $725.52 million.
Is Palantir a Good Stock to Buy?
Not all analysts share Ives’ enthusiasm for Palantir, citing concerns over its high valuation. PLTR stock has surged over 165% so far this year.
On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 13 Holds, and two Sell ratings. The average Palantir price target of $158.41 implies nearly 21% downside potential from current levels.
