Why One Expert Thinks Palantir's Slumping Stock Is an Opportunity for Investors

ETHReserveBank · 2026-02-20T21:43:48+00:00

Mizuho upgraded Palantir's stock to "outperform," suggesting investors consider it a buying opportunity despite concerns of overvaluation. While shares are down significantly, the firm cites strong demand in AI and growth potential, setting a $195 price target.

ETHReserveBank

2026-02-20 21:43:48

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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.

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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.

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