Palantir nyse Pltr Stock Jumps As Jefferies Turned Bullish Ahead of Earnings Report

Palantir (NYSE: PLTR) Stock Jumps as Jefferies Turned Bullish Ahead of Earnings Report

Palantir Technologies (NYSE: PLTR) stock climbed over 4% in pre-market trading Monday as Jefferies raised its price target ahead of earnings.

Jefferies, a leading investment firm, raised its price target for Palantir Technologies (PLTR) to $24 from $22 per share on Friday, while maintaining a Hold rating ahead of its earnings release scheduled for May 6. 

Daniel Thill, an analyst at Jefferies, last adjusted his price target for Palantir following the company’s Q4 earnings report in February, raising it to $22 from $13. In January, Thill had lowered the price target to $13 from $18, citing concerns about overhyped artificial intelligence prospects and an unjustifiable valuation.

Thill’s latest price target revision signals a notable shift in perspective, acknowledging the recent uptick in Palantir’s stock price, which has surged around 35% since the beginning of the year. Despite elevated expectations, Thill believes that the setup for the first quarter remains achievable.

However, Thill isn’t the sole analyst adjusting his stance on Palantir ahead of its earnings release. Brian White, an analyst at Monness, Crespi, Hardt & Co., recently upgraded the company from “sell” to “neutral,” citing potential benefits from the AI revolution and geopolitical tensions. Nonetheless, White remains cautious, highlighting revenue volatility from government contracts and concerns about execution and valuation.

Despite the growing optimism among some analysts, Palantir still faces skepticism from the broader analyst community. On average, 18 analysts project a $19.23 price target for PLTR, suggesting a roughly 17% decrease. Notably, Wedbush holds the highest price target at $35, while RBC Capital maintains the lowest at $5.

As Palantir prepares to unveil its Q1 earnings, analysts forecast revenue of $618 million, signaling a year-over-year growth of 17.58%. Moreover, analysts anticipate GAAP EPS of three cents, marking the company’s sixth consecutive quarter of profitability.

Palantir (NYSE: PLTR) Stock Price Action

PLTR stock jumped 3.46% to close at $23.33 on Friday. Its value has risen by 3.60% this week. Trading activity has witnessed 55,976,408 (55.97 million) shares changing hands, lower than the average daily volume of 67.99 million.