New Palantir Price Target After Pentagon Change Threatens Shakeup
The AI firm gets a new target price following AI startup news at the U.S. Department of Defense.
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That time again?
I suppose it is. By reader request, let's update our take on Palantir Technologies (PLTR) .
Palantir released the firm's fiscal fourth quarter financial results on February 2, more than a month ago. I last updated the stock publicly on February 24, two weeks ago. The stock is up a very quiet 20.3% since I wrote that piece. Since then, the nation has gone to war, where Palantir is obviously a significant player. The stock, however, started its rebound well ahead of the onset of hostilities.
The technical picture was pretty bleak at that time, but the shares of Palantir did something remarkable shortly after I wrote that article. PLTR broke out of a bearish technical pattern to the upside. Some say that rallies that come out of bearish looking technicals tend to be among the most powerful rallies that our marketplace has to offer.
On that count, given that I have always taken profits at target prices, I had never given up on the stock. I have moved the name back into my top-five holdings in terms of weighting, albeit at number five. Let's take a look.
News
Earlier this week, the fallout between the AI startup Anthropic and the Department of Defense/War came to light.
Anthropic had served the federal government through a partnership with Palantir for more than a year. The Pentagon's decision to restrict military contractors from using Anthropic's technology might force Palantir to sever ties with the company in order to maintain its position with the DoD/W. There is a belief that Palantir's platforms can work just as well with OpenAI, which just signed on to replace Anthropic, and that Palantir will not be at much risk at all.
Wall Street
- On Friday, Karl Keirstead of UBS (five stars at TipRanks) upgraded PLTR from a "Hold" to a "Buy" and reiterated his $180 target price
- On Tuesday, John McPeake of Rosenblatt Securities (two stars) reiterated his "Buy" rating on PLTR while taking his target price from $150 to $200
- On Tuesday, Clarke Jeffries of Piper Sandler (one star) reiterated his "Buy" rating on PLTR and his $230 target price
The Chart
This is the bearish descending-triangle pattern that I showed readers two weeks ago:
At that time, I canceled my $217 target price and told readers that once I saw some kind of bullish pattern develop, that I would come up with a new one. So, I ask this question:
Is Palantir in the process of putting in a cup pattern or maybe a cup-with-handle pattern?
Both are bullish in nature. If this is a cup, we don't know that yet. That pivot would be the left side apex of the cup itself, or $199. That's probably unrealistic for now but keep it in mind.
Relative strength is looking good, but still has a long runway before hitting anything that might be considered to be technically overbought. The daily MACD is not yet overtly bullish in posture but is getting there.
The histogram of the nine-day EMA is now well above zero. That's a short-term bullish signal. Though both the 12-day EMA and 26-day EMA are still below the zero-bound (not bullish), the 12-day line has crossed above the 26-day line, which is bullish. Our new pivot until we are sure this is a cup pattern, will be the 200-day SMA.
Palantir Technologies (PLTR)
Target Price: $194 (new)
Pivot: 200-day SMA (currently $162)
Add: down to the 21-day EMA (currently $144)
Panic: New 2026 low
Related: The Jobs Report Was Awful But U.S. Market Has a Bigger Concern
At the time of publication, Guilfoyle was long PLTR equity.
