PLTR crashes but the fundamentals remain strong: Is the discount worth it?

Palantir at its worst moment of the year (for now)

On January 8th, Palantir Technologies’ shares experienced a slowdown after a rally that had lasted several sessions. The previous rebound was mainly fueled by speculation about the company’s involvement in recent U.S. military operations. Although the pullback has raised concerns among some investors, several analysts see this correction as more of an opportunity than a warning sign.

The numbers justifying the bet on PLTR

What’s most interesting in Arvind Ramnani’s analysis, an expert from Truist, is that he focuses on what truly matters: the fundamentals. The company has achieved a score above 100 in the 40 Rule, an indicator that measures the sum of the growth rate and operating margin. This milestone suggests that Palantir is not only growing but doing so in a profitable and sustainable manner.

With a free cash flow margin exceeding 40%, the company has plenty of financial muscle to reinvest in innovation or return capital to shareholders. These are exactly the numbers you see in world-class tech companies.

What does Wall Street really say?

Ramnani maintains his “buy” recommendation and has set a target price of $223 per share, which would imply an almost 30% increase from current levels. His thesis pivots on two pillars: the acceleration of AI adoption during 2026 and Palantir’s international expansion into markets where its technology is still relatively unknown.

Jim Cramer, during his appearance on CNBC, went further and highlighted that Palantir has genuinely transformed the operational results of its clients. For someone like Cramer, this is the mark of a truly differentiated business in the market. While Truist remains more bullish, the overall Wall Street consensus stays at “Hold” with an average target price of $193, suggesting a moderate upside potential of 10% from here.

The Cramer Rule and its application to PLTR

One aspect many investors overlook is how Palantir meets the criteria of the Cramer Rule to identify stocks with exceptional potential. The company has demonstrated consistent growth, increasing margins, and above all, a clear narrative about its future in AI across both public and private sectors. The fact that it has risen approximately 180% from its last year’s low does not cancel out these solid fundamentals.

The verdict of the numbers

Palantir’s shares are not cheap in valuation terms, but the target prices suggest there is still room for appreciation. Barchart’s options analysis even indicates that PLTR could break the $200 barrier in the next quarter if AI catalysts accelerate as analysts expect. For long-term investors, this small pullback could be exactly the entry point they were looking for after several weeks of accelerated gains.