- Maggio 10, 2024
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
“Given the recent dip in the stock, we’re adjusting our rating on Palantir to Neutral from Sell,” White remarked, opting not to set a specific price target at this juncture.
The 5-star analyst’s reassessment comes ahead of Palantir’s upcoming Q1 results, slated for May 6th. White is confident that the company will at least match his forecast, expecting Q1 revenue to reach $620 million, slightly below the Street’s estimate of $625.3 million, and EPS to hit $0.08, aligning with consensus figures. Despite a slight slowdown from the previous quarter’s 20% growth, White’s projected 18% year-over-year increase mirrors the performance from the same period last year. Palantir’s Q1 guidance sets revenue between $612-616 million and adjusted income from operations in the $196-200 million range.
For Q2, White expects Palantir will guide for revenue of $647.8 million (a 21% y/y increase, below the Street at $653.4 million) and EPS of $0.09 (above the Street at $0.08).
While White has upgraded his rating, he still thinks the stock is pricey, noting that despite the recent drop, it still has the “richest valuation in our enterprise software group, while also claiming the top spot across our entire universe.”
A hot valuation also appears to be a concern for other Street analysts. Based on a mix of 6 Sells, 5 Holds and 2 Buys, the consensus view is that this stock is a Moderate Sell. The shares are expected to drop ~13% from here, considering the average target stands at $19.67.