Analysts have set the price of Palantir (PLTR) shares for the next 12 months

The share price of US software company Palantir Technologies (NYSE: PLTR) had a stellar week after the company released a better-than-expected earnings report.

Interestingly, Palantir’s second-quarter earnings report saw a sharp increase in revenue and new customer acquisition, while the company continued to see solid customer base growth, with a strong focus on commercial customers, leading to revenue and profitability growth.

Specifically, Palantir revenue for the quarter reached $678 million, while adjusted operating income rose to $254 million. The company also raised its full-year guidance, reflecting strong confidence in future growth.

Indeed, PLTR has been a key beneficiary of this momentum, rising more than 38% in the past seven days. Shares closed at $30 on August 9, with a 24-hour gain of more than 3%. What’s more, Palantir’s artificial intelligence (AI) venture has been a key catalyst heading into 2024, with PLTR up more than 80% year-over-year.

Analysts have set the price of PLTR shares

Amid this bullish momentum, analysts have released their forecasts for Palantir stock performance over the next 12 months. Sixteen Wall Street analysts on Commercial View PLTR is forecasted to most likely undergo a correction in the next 12 months and trade at an average price of around $24.63.

This forecast implies a significant potential downside of 17.93% from the current trading price of $30.01. The estimate includes a wide range of outcomes, reflecting the company’s uncertain market outlook.

The highest target for next year is $38, suggesting an optimistic 26.62% upside, while the lowest forecast is a sharp decline to $9, implying a potential decline of 70.01%.

Despite these conflicting viewpoints, the overall analyst sentiment leans towards a neutral stance. Of the 23 analysts who have rated the stock in the past three months, most have recommended a Hold, while six analysts are a Strong Buy and three are a Buy.

On the other hand, the bearish outlook sees seven analysts advising a strong sell and one recommending a sell.

Palantir Basics

Although analysts are forecasting a bearish outlook for the stock, the stock has the potential to maintain its current momentum if Palantir demonstrates the ability to maintain these high levels of performance, particularly in its high-growth commercial segment in the U.S. Indeed, the bullish momentum is likely to continue if Palantir’s partnerships, such as the one with Microsoft (NASDAQ: MSFT ), work out.

Additionally, investors should pay attention to whether a company is committed to innovation and monitor any signs of valuation pressure.
To summarize, not only will these fundamentals play a key role, but stocks are also susceptible to prevailing economic factors, such as fears of a possible recession in the United States.

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