Palantir (NASDAQ:PLTR) has been on a bull run for the ages over the past calendar year. Fueled by demand for AI-supported decision-making from sovereign and commercial clients alike, shares of the big data analytics company rose 334% over the past twelve months.
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Whenever a stock rises so dramatically, the question naturally arises: will these gains continue, or is a consolidation on the horizon?
According to one investor, known by the pseudonym Simple Investment Ideas, the answer is clear: the PLTR Express still has plenty of fuel in the tank.
“Palantir continues to successfully implement real-world AI across government and commercial sectors at an impressive rate,” asserts the 5-star investor.
SII explains that PLTR’s success in harnessing the power of AI to improve decision-making has been shown time and again. What sets the company further apart from its competitors is its ability to demonstrate tangible benefits for its clients beyond theoretical applications.
The investor notes that PLTR’s deepening work with U.S. government defense agencies is a key revenue driver for the company. In particular, SII mentions how PLTR’s Gotham platform is becoming a “mainstay” for the defense industry, which is increasingly relying upon the company’s expertise for sensitive tasks including real-time battlefield analytics.
However, beyond the lucrative government contracts, SII reminds investors not to overlook the strength of PLTR’s commercial partnerships across a wide array of industries, ranging from manufacturing to healthcare. Moreover, the investor is impressed with PLTR’s ability to convert dubious parties about the promise of AI into full-fledged believers – and, consequently, loyal customers.
“Commercial enterprises that previously viewed AI as an experimental and unreliable technology now often rely heavily on Palantir,” says SSI.
While acknowledging PLTR’s relatively expensive forward P/E ratio of 176, the investor concludes that the company’s high growth potential justifies this lofty valuation.
“All indicators point to Palantir remaining at the forefront of the AI transformation impacting industries worldwide,” declares SSI, who rates PLTR shares a Buy. (To view Simple Investment Ideas’ track record, click here)
Wall Street, however, offers a more cautious perspective. Analysts argue that PLTR’s meteoric rise might have overshot its fundamentals. With 2 Buy, 10 Hold, and 7 Sell recommendations, the stock earns a consensus Moderate Sell rating. The 12-month average price target of $48.27 suggests a potential downside of ~33% in the year ahead. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
