Palantir’s Analyst Targets Span $80 to $255 as Shares Rally

Palantir shares traded at $183.03 on September 22, while Wall Street’s average 12-month target stood near $196. Forecasts ranged from $80 to $255, a spread that shows how differently analysts value the fast-growing software company.

The article’s own $185.99 target was more cautious than the Street average. It implied just 1.6% upside from that day’s share price, and came with a “Hold” rating from 24/7 Wall St.

The bullish case has fresh operating results behind it. Palantir reported second-quarter revenue of $1.935 billion, up 93% year over year, while U.S. commercial revenue rose 149% to $764 million. The company also raised its full-year revenue growth outlook.

Analysts have responded with high targets. UBS raised its target to $250 from $220 on September 15 and kept a Buy rating. Bank of America’s $255 target sat at the top of the range tracked by MarketScreener.

The low end points to a very different view of the risk. Jefferies set an $80 target and maintained an Underperform rating, according to MarketScreener. At that level, the forecast implied a steep fall from the September 22 price.

Valuation helps explain the divide. 24/7 Wall St. put Palantir’s forward price-to-earnings ratio at 79, compared with 27 for ServiceNow. That premium assumes Palantir can sustain unusually fast growth.

The same article’s scenarios ranged from $158.91 in a bear case to $213.74 in a bull case. Investors will be watching whether revenue growth and customer demand stay strong enough to support expectations built into the share price.