Palantir Technologies Inc. (PLTR, Financial) extended its rally for a third consecutive day on Thursday, with shares climbing over 7% by mid-morning. This surge follows the company's impressive Q4 earnings report earlier in the week, which pushed the stock up more than 20% in just three days. The rally has significantly increased Palantir's market capitalization, adding roughly $40 billion in paper wealth.
Wall Street's skepticism toward Palantir is beginning to shift as analysts race to revise their price targets. Since the earnings release, several analysts have raised their projections despite concerns about the stock's lofty valuation. The consensus target price has jumped from around $45 at the end of December to nearly $87 on Wednesday. Still, that target remains about 15% below the current trading level, reflecting continued caution on the stock's future performance.
While Palantir's valuation might be hard to justify in the long term, momentum-driven gains seem likely to continue in the near term. Analysts agree that the stock could keep rising, driven by strong earnings and heightened investor optimism.
