'Back the Truck Up': Top Investor Sees PLTR Rebounding to $200

Palantir (NASDAQ:PLTR) stock offers quite the conundrum for investors. While few doubt the business case of this flashy AI play, its inflated valuation is too much for some.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Lately, the bears have certainly been winning. The company's share price has been tanking over the past few months, shedding 27% of its value since reporting a monster quarter three months ago – despite growth that remains blisteringly fast. CEO Alex Karp was standing on solid (albeit slightly bombastic) ground when he deemed Palantir's Q3 "arguably the best results that any software company has ever delivered." Indeed, the company's Rule of 40 score (the sum of its year-over-year revenue increase and adjusted operating margin) of 114% reflects astounding growth by any metric. Truth be told, it's not just Palantir's valuation that is worrying investors. Talk of an AI bubble hits companies like Palantir right in the solar plexus, as any slowdown in adoption could derail the company's intense growth story. As Palantir gears up to deliver its Q4 and full-year 2025 numbers tomorrow after the market closes, one top investor, known by the pseudonym Deep Value Investing, thinks the fears are misplaced. "I think the market has thrown out the baby with the bathwater. The upcoming earnings report could re-rate PLTR stock if the guidance surprises the consensus," contends the 5-star investor, who is among the top 3% of stock pros covered by TipRanks. Deep Value argues that conflating Palantir with the rest of the software industry does the company a disservice. While AI might harm some companies (the investor cites SAP, for example, which could see its billable work hours slashed), enterprise AI adoption is a certified tailwind for PLTR. According to Deep Value, it all comes down to the guidance that Palantir's management unveils with the earnings. If management succeeds in delivering another "blowout guidance" – a company tradition, notes Deep Value – things could be looking upward indeed. Even Palantir's towering forward P/E of 274x doesn't scare this investor off. "In my view, this multiple shouldn't be an argument for a bear case as long as the growth story remains intact," Deep Value concludes. Is Palantir Stock a Strong Buy or Just Neutral? Convinced the good times will keep on rolling, Deep Value assigns PLTR shares a Strong Buy. (To watch Deep Value Investing's track record, click here) Wall Street, however, is still keeping its guard up. With 6 Buys, 10 Holds, and 2 Sells, PLTR lands a consensus Hold (i.e., Neutral) rating. Even so, analysts see room to run, with a 12-month average price target of $189.94, implying about 30% upside from here. (See PLTR stock forecast)