Analysts Cut Palantir Targets Before Q1; 74% Growth Forecast, Puts Offer 11.7% Yield
Analysts lowered Palantir’s price targets ahead of its May 4 Q1 report, which is expected to show 74% revenue growth and more than double EPS year-over-year. Investors can sell March 19, 2027-dated $85 strike puts to collect roughly 11.7% annualized yield while aiming for a 40% discounted entry.
1. Analyst Price Target Revisions
A leading investment bank lowered its 12-month price target on Palantir ahead of the Q1 earnings release, reflecting concerns that strong growth expectations are already priced into the stock.
2. Q1 Earnings Expectations
Palantir will report first-quarter results on May 4, with projections of 74% year-over-year revenue growth and more than a twofold increase in EPS driven by expanding government and enterprise contracts.
3. Options Strategy for Discounted Entry
Some investors are selling March 19, 2027 $85 strike put options, receiving approximately $580 in premium per contract for an 11.7% annualized yield while securing a potential entry price 40% below current levels.
4. Valuation and Long-Term Upside
The stock trades at over 200 times trailing earnings and above a 100 price-to-sales ratio, prompting bubble concerns despite a 511% five-year gain and its strategic positioning in the agentic AI market.