Palantir Shares: A 26% Upside Target Amidst Market Correction

Palantir Technologies Inc. has been navigating a turbulent period, with its stock price declining approximately 27% over the last month. This significant pullback has placed the data analytics company in a pronounced correction phase. However, a fresh analyst assessment has emerged against this backdrop of investor unease, prompting a critical market debate: does the recent sell-off present a buying opportunity, or do valuation concerns remain paramount?

Investors continue to grapple with the stock's premium valuation. Trading at a price-to-earnings (P/E) ratio exceeding 350, the shares are priced for perfection, contributing to their notable volatility. The equity shed roughly 17.5% in the past week alone, closing at a recent price of €141.02. The gap to its 52-week high of €194.17 has now widened to over 27%, underscoring the pressure on the company to deliver on lofty growth expectations to justify its current market price.

The next major catalyst for direction is scheduled for February 2, 2026, when Palantir is set to release its fourth-quarter results. Market consensus anticipates earnings per share of $0.23 on revenue of approximately $1.34 billion.

Bullish Analysts Point to Aggressive Growth Forecasts

Despite the challenging price action, Wall Street retains vocal proponents for the stock. Phillip Securities recently initiated coverage on Palantir with a "Buy" recommendation, assigning a price target of $208. This target implies a potential upside of about 26% from current levels.

This bullish stance is anchored in robust growth projections for fiscal year 2025. Analysts forecast a substantial revenue surge of 47% to $4.2 billion. A notable shift in business mix is expected: while government sector growth is projected to remain solid at 43%, the commercial segment is anticipated to accelerate even faster at 51%. Consequently, net income for 2025 could nearly double.

Should investors sell immediately? Or is it worth buying Palantir?

Phillip Securities is not alone in its optimism. Citigroup also recently upgraded the stock to "Buy," setting a $235 price objective. Nevertheless, the broader analyst consensus remains cautious, as reflected in a significant number of "Hold" ratings.

Strategic Moves Underpin Long-Term Confidence

The analyst optimism is supported by tangible strategic initiatives, not merely speculation. Palantir is actively working to diversify its revenue streams and reduce reliance on U.S. government contracts.

A key development is the confirmed partnership with Sovereign AI and Accenture, announced on January 21, aimed at establishing "Sovereign AI" data centers across the EMEA (Europe, Middle East, and Africa) region. Under this collaboration, Palantir will provide the software platform to manage infrastructure built on Dell and Nvidia hardware.

Concurrently, the company is strengthening its foothold in Asia through an expanded alliance with HD Hyundai in South Korea. These steps highlight a deliberate strategy to address localized data sovereignty requirements and expand its commercial business globally.