Shares of Palantir Technologies Inc (NYSE:PLTR). ($PLTR) rose more than 2% on Monday, reaching fresh record highs following bullish price-target hikes from analysts and ahead of a major listing shift.
BofA Securities analyst Mariana Perez Mora raised Palantir’s price target to $75 from $55, highlighting the company’s ability to digitize a wide range of industries, from finance to defense.
The firm sees Palantir "the enabler and winner in this new era" where it says efficiency, innovation, safety, and speed are the most valuable assets.
Wedbush analyst Daniel Ives also increased his price target on Palantir to $75 from $57, reiterating an ‘Outperform’ rating. He believes that the AI-driven enterprise phase, which will start in 2025 with the introduction of large language models, will be a major catalyst for the software sector.
The analysts’ takes also come just a day ahead of Palantir’s expected move from the New York Stock Exchange (NYSE) to the Nasdaq, which is expected to significantly raise the company’s visibility and attract institutional investors.
The shift has also sparked some controversy. Two weeks ago, Palantir board member Alex Moore reportedly deleted his X profile after he suggested that the move was made to cater to retail investors.
Moore claimed that it would result in “billions in ETF buying” and deliver “tendies” to retail traders. This comment, along with his remarks about how Palantir has faced hate over the years while rewarding its “retail diamondhands,” drew attention to the company’s efforts to appeal to retail sentiment.
A poll revealed that over 50% of retail investors believe Palantir’s valuation is justified by its future growth prospects, while 22% see the stock as a “bubble ready to pop.”
The stock’s high trailing twelve-month P/E ratio of over 300 has already prompted warnings from analysts about potential overvaluation.
Palantir has been a standout performer in 2024, with its stock up a staggering 295%, driven by its ambitious AI-driven strategy, significant government contracts, and strong earnings.
The stock has garnered considerable retail interest over the past year, with its following on Stocktwits growing by over 15% and message volume soaring by 720%.
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