Palantir’s Stock Is Up 300% This Year, Bulls See Further Upside

Palantir Technologies' stock (NASDAQ: PLTR) has been riding a bullish wave over the past month of trading, gaining 60% through the month of November, and now over 300% year-to-date. The company stands as a beacon of innovation, though with its stock currently valued at more than $66, how much higher can it go?

Wedbush analyst Dan Ives for one remains steadfast in his outlook for the big data company, asserting a price target of $75 but he by no means stands alone. BofA are another to put in place a $75 price target on PLTR, upgrading the stock it sees as “the enabler and winner in this new era” in recent weeks from the prior mark of $55.

High defence spending is another factor that some are seeing benefit Palantir, with incoming President Trump expected to push budgets higher.

Over at Wedbush, Dan Ives points to Palantir's untapped potential within the software sector, suggesting a gross underestimation by the market. His confidence is buttressed by the company's enterprise solutions arsenal, which he deems capable of generating billions in revenue. The Advanced Intelligence Platform (AIP), unveiled in April 2023, exemplifies Palantir's venture into integrating sophisticated AI, like large language models, to refine decision-making processes, particularly within the realms of defense and intelligence sectors.

Ives projects 2025 as a pivotal year for AI implementation across various industries, with Palantir poised to reap the benefits. However, despite solid performance and revenue growth, certain analysts express trepidation regarding potential overvaluations of Palantir's stock.

There are clearly some very bullish on the company, but the rate of appreciation, and the disconnect with P/E ratios are raising some eyebrows. Not all companies will trade on fundamentals, but when considering such topics, analysts are split. The consensus price target on the street has not caught up with that of Wedbush or BofA, and whether these are also moved up we will only know in time. The bear case has the stock in low double digits, only indicating the split on the street.

What cannot be discounted for now is price-action. While Palantir Technologies has caught the eye of analysts, and retail, the next stage will be demonstrating operational successes, which to be fair the company has done with consistent beats on earnings top and bottom lines. After such a run, a pullback can be healthy, but with no signs of one to come, this will be one we will keep watching.