High-flying Palantir Stock Eyes Fresh Peak As Retail Exuberance Grows Despite Overbought Levels

Loop called Palantir an “early software leader” in enterprise AI, which, according to the research firm, was at a tipping point.

Palantir Technologies, Inc. (PLTR) stock trended on the Stocktwits platform early Monday, gaining in the premarket session, signaling that its record run would continue. 

The Alex Karp-led company is now the best-performing S&P 500 stock, up 82% for the year-to-date period.

Palantir stock rallied 1.63% to $137.40 on Friday, marking a fresh closing high, although it did not have enough momentum to break above the record intraday high of $140 (June 11). The gains came despite a pullback in the broader market on Friday amid a strong consumer sentiment reading.

Palantir is a data analytics company, and its artificial intelligence platform (AIP) is widely used by government and commercial customers. 

Last week, Loop Capital increased the price target for the stock to $155 from $130 and maintained a ‘Buy’ rating, the Fly reported. 

The upbeat assessment came after the analysts at the firm attended Palantir’s investor meeting and were impressed with the AIP, enterprise artificial intelligence (AI) industry trends, the competitive environment, and the company’s differentiators.

Loop called Palantir an “early software leader” in enterprise AI, which, according to the research firm, was at a tipping point as small-scale pilots moved into production and AI use cases grew exponentially across all industries.

On the other hand, Citi analyst Tyler Radke said his meeting with Palantir CFO Dave Glaze did not allay his valuation concerns, especially if the magnitude of positive revisions slows or large contracts like the Golden Dome don't materialize as expected. The analysts, however, said the meeting affirmed his upbeat view on Palantir’s fundamentals. 

On Stocktwits, retail sentiment toward Palantir stock was ‘bullish’ (55/100) by early Monday, although the message volume was ‘normal.’

The stock is now among the platform's top 20 trending tickers and top 10 most active tickers. 

A bullish watcher said he expected the stock to retest the $140 level and break above the $145 level this week.

Another user suggested the company stands to gain from providing an AI-powered defense solution to Israel in the country’s ongoing conflict with Iran.

Sell-side analysts do not share retail’s excitement about Palantir stock. The Koyfin-compiled consensus price target for the stock is $101.32, implying over 26% downside potential.

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