Palantir Stock: Despite Being Frothy, Remains A Buy

Summary:

  • Palantir’s stock has surged by 700% since its 2022 low, prompting a shift from a strong buy to a buy rating, preferably on pullbacks.
  • Despite stellar earnings and strong U.S. commercial growth, Palantir’s valuation is now high, making it less of an obvious strong buy.
  • I reduced my Palantir stake by 50% but remain bullish long-term, planning to buy more on future pullbacks or corrections.
  • Palantir’s future growth hinges on maintaining its AI leadership and exceeding sales and EPS estimates, despite risks from its high valuation and macroeconomic factors.

Palantir Technologies headquarters campus exterior view in Silicon Valley. - Palo Alto, California, USA - 2019

Michael Vi

I’ve been bullish on Palantir (NYSE:PLTR), making it my most significant portfolio holding when it was still in the single digits. I recognized that Palantir was a unique company that provided a valuable service to government and

Year 2024 2025 2026 2027 2028 2029 2030
Revenue Bs $2.8 $3.5 $4.5 $5.7 $7.3 $9.1 $11.3
Revenue growth 26% 27% 28% 28% 27% 26% 25%
EPS $0.38 $0.50 $0.62 $0.78 $1.05 $1.35 $1.70
EPS growth 52% 32% 24% 26% 35% 29% 24%
Forward P/E 100 90 85 80 75 70 65
Stock price $50 $56 $66 $84 $101 $119 $133


Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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