PLTR - Palantir: Booming Business But High Valuation - Stay Cautious
2024-06-04 16:19:46 ET
Summary
- Palantir's Q1 FY2024 financials show sales growth, improved gross margin, and excellent cost management. But you should stay cautious.
- Expanded partnerships with tech giants such as Oracle should enable Palantir to maintain its growth rates in commercial segments.
- Despite potential growth drivers, even on bullish assumptions, PLTR appears to be a highly overvalued stock, although there are tailwinds from all sides.
- Based on my valuation calculations, the fair price by the end of FY2027 should be $17.62 - that's around 17.35% below PLTR's current stock price.
- I believe any earnings miss in the foreseeable future or slightly negative news can lead to potential losses for current buyers. Be vigilant.
Intro & My Coverage History
I have been covering Palantir Technologies Inc. ( PLTR ) here on Seeking Alpha since October 2021: I initially rated the stock as a "Sell" due to its overvaluation and seemingly limited growth at the time. My bearish calls were successful for about a year - until market expectations shifted towards rapid growth through AI, which allowed PLTR stock to recover quickly....
Palantir: Booming Business, But High Valuation - Stay Cautious