PLTR - Palantir: Outperformance Possible Even Without New Government Contracts

2024-05-12 23:17:02 ET

Summary

• Despite the recent stock decline, maintained "strong buy" rating on Palantir with a fair price estimate of $24.13, offering a 12.7% upside from current price.
• Q1 2024 earnings met expectations, highlighting PLTR's stability amid market fluctuations.
• Projected future stock price for 2029 at $108.81, suggesting substantial annual returns of 40.8% from 2024-2033.
• Explored potential downsides, including stagnant government revenue, with a conservative downside estimate of 14.3%, reaffirming confidence in Palantir's resilience at its current valuation.

Thesis

In my previous article on Palantir Technologies Inc. ( PLTR ) I reiterated my "strong buy" rating on the stock, citing that my estimated fair price stood at $17.04 and an estimated future price for the year 2029 of $54.12.

Since that article, the stock has decreased by 10.50% due to the raised outlook of Palantir not impressing investors. Nevertheless, the company reported in-line EPS of $0.08 for Q1 2024 and beat on revenues by a 2.70% margin....

For further details see: