Investment bank Loop Capital sees the plunge in Palantir Technologies (PLTR) stock as a buying opportunity.
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Mark Schappel, a top five-star rated analyst at the Wall Street firm, says Palantir remains an early leader in the fast-emerging artificial intelligence software market, and is urging investors to buy the company’s stock on a day when it is down 10%. Loop Capital initiated coverage of PLTR stock with a Buy rating and $141 price target, which implies 40% upside from current levels.
The bullish call comes after Palantir’s share price has plunged 20% in about 24 hours on news that CEO Alex Karp plans to sell $1.23 billion worth of shares he owns in the data analytics company. At the same time, there are media reports that the administration of U.S. President Donald Trump plans to cut the U.S. defense budget as much as 40% over the next five years. Palantir is a major U.S. defense contractor.
Still Expensive
Schappel acknowledges that PLTR stock remains expensive trading at 530 times future earnings estimates, but says the company’s longer-term outlook remains intact. “We believe Palantir has all the hallmarks (massive market, category leader, strong execution) of becoming a game-changing software stock along the same lines as Adobe (ADBE) in digital marketing and Salesforce (CRM) in cloud,” wrote Schappel.
Schappel added that investors should view the current and future pullbacks in PLTR stock as buying opportunities. “It’s hard to put a price on the opportunity, so we believe the best strategy is to hold your nose on valuation and just get involved,” he wrote.
Palantir shares have increased 30% in 2025 and are up 333% over the last 12 months.
Is PLTR Stock a Buy?
Palantir Technologies stock has a consensus Hold rating among 18 Wall Street analysts. That rating is based on three Buy, 10 Hold, and five Sell recommendations issued in the last three months. The average PLTR price target of $91.88 implies 7.49% downside risk from current levels.
