Analysts Stay Cautious Amid Retail Hype
Fiscal.ai-compiled consensus estimates put earnings per share at $0.17 and revenue at $1.18 billion.
- Thanks to a 163% year-to-date gain, Palantir stock is the fifth-best-performing S&P 500 company this year.
- Fiscal.ai-compiled consensus estimates put third-quarter earnings per share at $0.17 and revenue at $1.18 billion.
- RBC Capital Markets analyst called out Palantir’s valuation as unsustainable in the absence of a substantial “beat-and-raise” quarter,
Palantir Technologies (PLTR) stock appears on track to build on its nearly 5% advance on Thursday, as it approaches the key $200 psychological barrier. The stock could be in for more upside in the run-up to Monday’s (Jan. 3) earnings.
Thanks to a 163% year-to-date gain, Palantir stock is the fifth-best-performing S&P 500 company this year. It closed Wednesday’s session at a fresh high.
Retail Optimism Abounds
Palantir attracted an ‘extremely bullish’ reaction from retail users of the Stocktwits platform as of early Thursday. The message volume on the stream climbed nearly 80% over the 24 hours leading up to late Wednesday, with the retail chatter at ‘extremely high’ levels.
A bullish watcher hyped up Palantir stock by surmising that it could be the Magnificent Eighth stock. “I almost feel like this stock is too good to be true,” they added.
Another user drew on his experience and recommended the right time to buy Palantir stock. Stating that the stock could selloff even if Palantir’s earnings are good and there would be mass insider selling after earnings, they said the ideal time to buy would be after late November, when insiders would have paused their sales.
$200 Hair’s Breadth Away
In Thursday’s early premarket session, Palantir stock climbed about 0.47% to $199.75, as it closed in on the $200 level. The 14-day relative strength index (RSI) for the stock is about 69%, suggesting that the stock is nearing an ‘extremely overbought’ zone.
In the event of any pullback, the stock could find support around its 50-day simple moving average (SMA), currently at $173.13.
Chart Courtesy of Koyfin
Analysts Stay Guarded
In a note released on Tuesday, RBC Capital Markets analyst called out Palantir’s valuation as unsustainable in the absence of a substantial “beat-and-raise” quarter, echoing the sentiment expressed by short seller Citron in mid-August. RBC stated that retail investors, who heavily back the stock, could become frustrated by the absence of any capital returns and the further lack of a clear strategy on this front.
The firm expects multiple compressions due to concerns around privacy and ethics. Citing checks, RBC said it remains skeptical of the commercial business amid ongoing churn discussions among enterprise clients. The firm has an ‘Underperform’ rating and a $45 price target for Palantir stock.
Also, this week, Citi analysts said they believe matching the second quarter’s upside could be tough. That said, citing positive channel checks across government and commercial businesses, the analysts braced for strong third-quarter results. Citi has a ‘Neutral’ rating for Palantir stock and a $190 price target, following an upward revision this week from $177.
Fiscal.ai-compiled consensus estimates put fiscal-year 2025 third-quarter earnings per share at $0.17 and revenue at $1.18 billion, respectively.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
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