:max_bytes(150000):strip_icc()/GettyImages-2256813198-2644aa96008f4015a0ec3e01d6065f58.jpg "Why One Expert Sees Palantir’s Recent Stock Slump as an Opportunity for Investors")
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Key Takeaways
- Mizuho upgraded Palantir’s stock to “outperform” from a neutral rating, suggesting the stock’s recent slide could be an opportunity for investors to buy the shares at a discount.
- Wall Street analysts harbor some concerns that the stock could be overvalued after a strong run last year, though the average price target is still upbeat.
Palantir shares have slumped lately. Does that make them a deal?
Shares of Palantir (PLTR) were down about 1% in late Thursday trading. That leaves them down about 35% from their November highs amid a broader pullback in software stocks and some worries Palantir’s valuation may have eclipsed its fundamentals. The stock popped earlier this month after turning in Street-beating earnings, but that didn’t stop the slide.
But that pullback may be overdone, analysts at Mizuho suggested in a note to clients, saying now could be a good time to pick up Palantir shares.
Why This Matters to Investors
Palantir’s stock has had a tough start to 2026, amid some worries its strong run last year left it overvalued.
Mizuho on Wednesday upgraded Palantir’s stock to “outperform” from a neutral rating, setting a $195 price target that is 44% above Wednesday’s close.
The analysts pointed to strong AI demand trends and growth in the company’s commercial business. Palantir “is in a category of one, delivering total revenue growth, acceleration, and margin expansion at scale that is unlike anything else in software,” they wrote.
Of the eight analysts with current ratings tracked by Visible Alpha, only half consider the stock a “buy,” while half hold neutral ratings. (Michael Burry, meanwhile, has recently come out as a Palantir bear.) But the Street’s mean target is higher than Mizuho’s: The average just above $207 would suggest a return to the stock’s November high.
Read Investopedia’s full coverage of Thursday’s trading here.
