PLTR - Palantir Is Positioned For Continued Growth
2024-06-10 13:53:33 ET
Summary
- Palantir's shares declined by -15% after an earnings beat-and-raise, opening up an opportunity for investors to build a position in their high-quality business.
- I expect that the company's high-touch AIP boot-camp strategy will drive higher growth and margin expansion than Wall Street estimates.
- Palantir far outpaced the Rule of 40 in their Q1'24 earnings release with the stat reaching 56%. Free cash flow experienced a y/y decline due to changes in working capital.
Palantir ( PLTR ) reported a major beat-and-raise in their Q1’24 earnings release on May 6, 2024, and was met with a surprising -15% decline in their share price immediately following. Despite the near-term price action, I remain adamant in Palantir’s growth story and believe that with their high-touch AIP boot-camp strategy, the firm will realize significantly higher growth and margin expansion than what Wall Street consensus estimates suggest. I reiterate my STRONG BUY recommendation for PLTR shares, with a price target of $25.95/share at 17.66x eFY25 price/sales....
Palantir Is Positioned For Continued Growth