Palantir Stock Teetering On Brink Of Bear Territory After Another Analyst Maintains Sell Recommendation: Retail Maintains Bearish View

Palantir Technologies, Inc. ($PLTR) stock is on track to open lower for the third consecutive trading session on Wednesday, with the reiteration of a sell recommendation by an analyst potentially serving as a downside trigger. 

The artificial intelligence (AI)-powered data analytics company’s stock was among the top 20 trending tickers on Stocktwits.

On Wednesday, Deutsche Bank maintained a ‘Sell’ rating on Palantir stock but upped the price target from $26 to $35, TheFly reported. The upwardly revised price target still suggests scope for about 50% downside from current levels.

The analyst action was part of Deutsche Bank’s 2025 software sector outlook. The firm believes the software sector will outperform in 2025 due to improving fundamentals, positive estimate revisions, and potential modest multiple expansion over the year. 

According to Deutsche Bank, improving demand trends and AI optimism will more than offset “slow-but-ramping’’ generative AI adoption, elevated capex, and an ongoing scaling-laws debate.

Earlier this week, Morgan Stanley analyst Sanjit Singh expressed concerns regarding Palantir stock’s valuation following the 340% gain in 2024. The analyst assumed coverage of the stock with a ‘Sell’ rating and a $60 price target.

If Palantir stock dips below $67.84, it will enter bear territory, defined as a pullback of over 20% from a near-term peak. The stock hit an all-time intraday high of $84.80 and a closing high of $82.38 on Dec. 24.

PLTR sentiment and message volume January 8, 2025, premarket as of 9:22 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward the stock is ‘bearish’ (39/100), improving slightly from the 'extremely bearish' mood that prevailed a day ago. Message volume continues to be ‘high,’ reflecting brisk chatter concerning the stock’s recent downward move.

A bearish watcher said the stock isn’t cheap following the recent pullback. They see teens level as entry point.

 

Another premised their pessimism on Palantir on expectations that the stock market will see a 10% correction this year.

In premarket trading, the stock was down 2.77% at $68.05. 

Meanwhile, stock futures on Wednesday morning point to a modestly higher open after ADP’s private sector job gain for December came in softer than expected and jobless claims for the recent reporting week came below forecasts. 

If the broader market manages to rebound from Tuesday’s declines, Palantir could find some cushion and stall its losing streak

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