Palantir Earnings Due: BoA Raises Price Target Amid Bullish View. Is PLTR Stock A Buy?

Palantir Technologies (PLTR) is set to report its fourth-quarter earnings on Monday, February 3, after the market closes. Ahead of the earnings release, Bank of America Securities analyst Mariana Perez Mora raised the price target on PLTR to $50 from $30, while reiterating a Buy rating. The new price target implies an attractive 43.8% upside potential from current levels. Mora is bullish on Palantir's future growth, citing the company's inclusion in the S&P 500 index as a "watershed moment" that will attract institutional investors and reconsider its long-term potential.

Palantir's strong performance in the third quarter, with a 30% year-over-year revenue increase and a 43% adjusted EPS growth, has fueled analyst optimism. The company's customer count grew by 39%, and the average existing customer spent 18% more, indicating a robust business environment. Palantir's expansion into commercial markets, particularly its AI platform, has been a key driver of growth, with commercial revenue increasing by 54% in the third quarter.



Analysts expect Palantir to report fourth-quarter revenue of $775.91 million, up 27.4% year over year, and earnings of $0.11 per share, up 35% from the same period last year. Despite the positive outlook, not all analysts share the same enthusiasm for PLTR stock. The consensus rating on PLTR is Hold, with an average price target of $27.08, implying a 22.1% downside potential from current levels.

Palantir's stock has been on a rollercoaster ride, surging 102.5% year-to-date and nearly quintupling in value over the past year. However, the stock has also experienced significant volatility, with a Negative Insider Confidence Signal, as corporate insiders have sold shares worth $11.1 million in the last three months. Co-founder and Chairman Peter Thiel has also planned to sell up to $1 billion worth of PLTR stock through his investment company Rivendell 7 LLC by December 31, 2025.



As Palantir prepares to report its fourth-quarter earnings, investors will be closely watching the company's financial performance and guidance for 2025. With a strong bullish view from Bank of America Securities and a growing customer base, Palantir's future prospects appear promising. However, the stock's volatility and mixed analyst sentiment may give investors pause. Ultimately, the decision to buy, hold, or sell PLTR stock will depend on individual investors' risk tolerance and investment goals.