Palantir Technologies (PLTR) shares have been on a tear since Friday, gaining over 12% in value. The catalyst for this surge? Palantir’s inclusion in the prestigious S&P 500 index.
On Monday, Palantir’s stock soared by 14.08% following the Friday announcement. CEO Alex Karp, known for his outspoken nature, celebrated the company’s entrance into the S&P 500, calling it “one of the most important institutions in economic life.” He further stated, “We structured our company around what you ought to build, not only what you are told to build. It is a momentous occasion, not just for us, but for all our partners who rely on us. The rebels won on Friday. There’s no better metaphor for that than joining the S&P 500.”
Analysts echoed Karp’s sentiment, with Wedbush’s Dan Ives viewing Palantir’s inclusion as a significant boost to the company’s profitability. He referred to the move as “another validation moment for the Palantir story.” B of A Securities analyst Mariana Perez went even further, maintaining a Buy rating on the stock and raising the price target from $30 to $50 on Tuesday.
Adding fuel to the fire, Palantir announced a new enterprise agreement with oil giant BP PLC (BP) on Monday. The deal will introduce Palantir’s AIP software, incorporating powerful artificial intelligence capabilities. This collaboration aims to help BP safely and reliably leverage large language models (LLMs) to enhance human decision-making. The technology will provide suggested courses of action based on automated analysis of the underlying data.
Looking ahead, analysts have mixed predictions for Palantir’s stock in 2024. The average 1-year price target stands at $27.79, representing an expected downside of 19.95%. However, it’s worth noting that analyst opinions can vary significantly due to different assumptions and models. Currently, four analysts maintain bearish recommendations on Palantir, while five hold bullish ratings. The highest price target comes from B of A Securities at $50, while RBC Capital has the lowest target at $9.
As of Tuesday’s close, Palantir shares were down slightly at $34.53. The recent gains and future prospects remain to be seen, but one thing is clear – Palantir is making its mark in the business world, leveraging its cutting-edge technology to attract new clients and expand its reach.
