Palantir Stock Forecast 2023-2030: Is PLTR a Good Buy?

PLTR Stock Forecast: Latest Price

PLTR Stock Forecast: Latest news

  • Palantir Technologies has announced a partnership with Babcock International Group to enhance Babcock’s digital defense capabilities. This collaboration will leverage Palantir AIP, an AI-powered software platform, to enable data-driven decision-making and maximize the value of data across Babcock’s global defense operations.

Palantir Technologies Inc declared Q2 2023 Earnings

  • Revenue rose 13% YoY to $533 million.
    • Commercial revenue: 10% YoY growth ($232 million); US segment grew 20% YoY to $103 million.
    • Government revenue: 15% YoY growth ($302 million); the international segment saw a 31% YoY rise to $76 million.
    • Customer growth: 38% YoY and 8% QoQ; US commercial customers increased by 35% YoY.
  • Operating Expenses: Q2 at $416.3M; H1 reduced to $829.8M.
  • Interest & Other: Interest income at $30.3M for Q2; other expenses reduced to $9.0M.
  • Financial health: $135 million adjusted income (25% margin), $90 million cash operations (17% margin), assets worth $3.1 billion.
    • Turnaround with $28.1M net income in Q2; $44.9M for H1.

H1 2023 Snapshot:

  • Revenue reached $1.1 billion.
  • GAAP net income stood at $45 million (4% margin).
  • Robust financial metrics: $260 million adjusted income (25% margin) and $278 million cash operations (26% margin).

Projections for Q3 & 2023:

  • Q3: Anticipated revenue between $553-$557 million with expected GAAP net income.
  • 2023: Revenue expected to exceed $2.212 billion and adjusted income to surpass $576 million.

Share Repurchase Program:

  • Board greenlit up to $1.0 billion stock repurchase, dependent on profitability and other factors. The program has flexibility for adjustments based on company needs.

Asset & Liability Status:

  • Current Assets: Total growth of 17.6% to $3,576.9M.
  • Long-Term Assets: Total Assets grew by 15% to $3,980.3M.
  • Liabilities: Total increase of 15.4% to $945.1M.

Equity & Cash Flow:

  • Stockholders’ Equity grew by 15.2% to $2,955.5M.
  • Improved cash flow from operating activities by 183.6% to $277.6M in 2023.

Palantir Stock Technical Analysis

The overall technical analysis for Palantir stock suggests a strong buy sentiment.

The Relative Strength Index stands at 52.759, indicating neutral sentiment. The Stochastic RSI is at 85.456, signifying an overbought condition. The Moving Average Convergence Divergence is at -0.13, suggesting a sell signal, indicating a short-term bearish trend. The Average True Range is 0.7621, indicating relatively lower volatility.

In terms of moving averages, the Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) both convey a strong buy signal, with values ranging from 15.09 to 16.17.

Palantir Stock, Buy or Sell, Crowd Poll (New)

Net Buy Ratings = Buy%-Sell%

  • September 15th: +77.64%

Palantir Stock Forecasts

Palantir Price Targets For the Next 12 Months

Palantir Target Price$13.2
Morgan Stanley$9
DA Davidson$15

Can Palantir Stock Reach $1000?

Palantir Price Prediction 2023-2030, Aggregated

  • Palantir Price Prediction 2023 is $21.6
  • Palantir Price Prediction 2024 is $40.4
  • Palantir Price Prediction 2025 is $59.4
  • Palantir Price Prediction 2026 is $80.8
  • Palantir Price Prediction 2027 is $104
  • Palantir Price Prediction 2028 is $135
  • Palantir Price Prediction 2029 is $154
  • Palantir Price Prediction 2030 is $161

Palantir Stock Forecast Today

UTC: Sep 24th, 2023 05:45 PM
Overall OutlookBearish
1. Market's WisdomBearish
1a. Market DataBearish
1b. Technical RecommendationSell
2. Crowd's WisdomPartially Bearish
2a. Social Media BuzzLower
2b. Social Media SentimentLower

PLTR Stock Forecast: Is Palantir a Buy?

Palantir Technologies, a software business that specializes in big data analytics, is steadily declining once again. The company released its fourth-quarter financial report, which showed that sales exceeded forecasts, $433 million vs $418 million estimated. But, EPS is fell short of the analyst target, 2 cents vs 4 cents estimated. The market is becoming wary of the company’s prospects for expansion. Palantir increased sales by 34% year over year in the fourth quarter, reaching $433 million, and reiterated its goal of at least 30% annual sales growth until 2025. Some investors are concerned that public sector sales are faltering.

Recently, Palantir has established a partnership with Jacobs, saying that it needs more assistance than in the past to build its infrastructure in the national security industry. Palantir now has a market valuation of around $24 billion and is valued at roughly 59 times this year’s estimated adjusted earnings and 11.8 times expected sales, following recent sell-offs. Even after a huge drop in stock price over the last year, the company’s valuation remains growth-dependent. As a result, the stock is likely to be volatile in the near future. Analysts believe it is a good long-term investment opportunity.

Post the quarterly results, the stock has been volatile during trading hours and affected by market sell-offs and recent corrections. The Marco-economic factors generally impact tech stocks which are high valuation get impacted during the sell-offs.

For the short term, the position is held. For the medium-term, after the price stabilizes, for investors who find the numbers promising, it is a buy.

Positive and Negative Side of Palantir Business Modality

Positive Side: –

  • The company has contracts from government organizations like the CIA, FBI, and Centers for Disease Control and Prevention and is rapidly bringing private sector customers as well. The analytics specialist is seen as an early leader in the emerging market and its proactive approach and artificial intelligence-powered software can create a lasting impact.
  • The company expects sales to climb 40% this year and so it increased its full-year target growth of free cash flows from $300 million to $400 million. Post 2021, Palantir expects annual sales growth exceeding 30% for each of the next four years. Definitely, this forecast is aggressive, but in all likelihood data analytics services will see major demand boosts in the age of artificial intelligence and machine learning.
  • The ability to gather and analyze data will be at the forefront of public and private sector organizations and Palantir is taking proactive steps to capture both private and public sector clients to sustain its long-term growth.

Negative Side: –

  • As Palantir tries to shift its focus from government clients to private players, it will have to change in business modality and adapt to customer requests. Plenty of companies have transitioned well from their primary focus to the ancillary market and succeeded well, but many have failed as well.
  • Palantir saw its third-quarter government revenue increase by 34% only as compared to 66% in the second quarter year on year, as government revenue consists of a major chunk of overall revenue, it is concerning going forward.
  • While, believing that all remains good and business success going forward in coming years, being a shareholder will not reap the same fruits. Palantir is known for compensating its employees heavily with shares and as an outcome, the share count keeps on rising.

Without factoring in the initial investment, one share purchased a year ago, now controls 11% less of the company. This is just like US inflation, but it is 11% and not 6.7% as was announced recently.

  • Insight into company expenditure speaks volumes about the business model. For Palantir, sales and marketing costs grew 36% and general and administrative costs fell 34%, both are positive signs for investors but its research and development expenses grew by just 5%, and this is an alarm for investors, as a company that does not continuously innovate will surely lapse in future.
  • Lastly, valuations cannot be ignored for a company and Palantir is at the farther end of the scale. The stock price at 30 times the sale is a hefty multiple regardless of its growth story. Also, it claims to have an operating margin of 30%, but in reality, it falls to a 17% loss once stock-based compensation is considered in the picture.

Is Palantir a Right Buy at Current Levels?

  • Palantir has a solid business behind it and surely it will continue growing, but with growth-dependent valuations, it is not a high-risk stock. Investors will not be keen to participate in the company’s success if it cannot get its stock-based compensation under control.
  • For risk-tolerant investors, Palantir promises to lead the data analytics industry and the stock has the potential to emerge as the big winner in the near future. The company has showcased new uses in financial services like crypto, and many of its investments and partnerships are still at the nascent stage to bring results.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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