Palantir a new overweight at Piper Sandler on unique 'growth + margin model'

Piper Sandler has initiated Palantir Technologies (NASDAQ:PLTR) at overweight saying that the intelligence community software platform provider “has a one-of-a-kind growth + margin model that if proven durable could grow into a $24B run-rate by CY32E via share gains across two $1+ trillion TAMs.”
The firm has a $170 price target (~10% upside based on Thursday’s close).
While analyst Brent Bracelin said that Palantir comes with a high valuation and is high risk, it is also an “Al secular winner.”
He noted that the company has a -$4B revenue run-rate and 40%+ free cash flow margins.
Bracelin sees two growth drivers that could sustain this. The first is the U.S. government business, which could surpass $10B by 2030. The second is the commercial business, which could eclipse $5B by that year.
Given that shares have been volatile, he recommends investors wait for a share price decline before taking up a position.

Palantir a new overweight at Piper Sandler on unique ‘growth + margin model’