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- Palantir’s stock price has surged over 250% in the last 12 months, but financial metrics don’t justify the current $85 valuation.
- Despite strong revenue growth and positive net income, Palantir’s valuation metrics are significantly stretched, trading at over 300x 2024 P/E.
- Share-based compensation continues to dilute shareholders, and a more robust capital allocation framework is needed for buybacks and venture investments going into the latter half of the decade.
- I recommend a sell rating with a $60 price target, anticipating a 30% decline to align with more reasonable valuation metrics.
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