- I expect the commercial segment growth to accelerate as enterprise AI adoption increases in the next years, eventually overshadowing government revenue.
- So far, I see strong signs of momentum in enterprise AI adoption. Palantir’s US commercial customer base has grown to 295 clients, an 83% YoY increase.
- I see a company with great fundamentals, including triple-digit net income growth over the last four quarters, 81% gross margins, and record 60% adj. FCF margins.
- Future corrections may occur due to short-term speculators, but I expect pullbacks to be short-lived, as I believe there are many investors ready to buy once prices dip.
- Despite Palantir’s current modest 1.2% share of a $230 billion total addressable market, I maintain a Strong Buy rating based on compelling evidence of market penetration and growth potential.
Someone said (I believe it was Buffett) to be fearful when others are greedy, and be greedy when others are fearful.
Well, looking at the latest SA analyst ratings for Palantir Technologies Inc. (NASDAQ:PLTR), it appears this could be one of those moments to buy.
Of course, Buffett was referring to the share price, not analysts’ ratings. However, I find the ratings, particularly those on Seeking Alpha, to be an interesting gauge of market sentiment for a particular stock, regardless of what the share price is doing.
Despite being a contrarian, I do agree with the current analyst consensus that, from a traditional valuation perspective, the share price looks absurdly overpriced. In fact, as a value investor, I rarely see P/E ratios over 380 in my stock screener. However, when I look beyond the current share price and basic valuation ratios, I recognize that there’s a real, strong business behind those four letters — PLTR — that makes sense to me.
READ FULL ARTICLE HERE!
