Palantir’s stock has surged 343% in 2024, reaching high valuations from various angles. However, top investor Gary Alexander is urging caution, arguing that traditional valuations may not be relevant due to the company’s unpredictable growth patterns.
Alexander, a 5-star TipRanks analyst, believes Palantir plays by its own rules and doesn’t fit the usual corporate mold. Despite recognizing potential risks associated with high valuations, he expects the company’s growth to continue and sees opportunities for expansion into new markets, particularly in the US government contracts sector.
The investor notes that Palantir has a broad potential to land large government deals under the new administration and is only starting to tap its customer base. With roughly two-thirds of private sector clients in the US, Alexander expects the company to significantly increase its business overseas.
Wall Street’s consensus rating on PLTR is Hold (Neutral), with 2 Buy, 8 Hold, and 6 Sell recommendations. The 12-month average price target suggests a ~46% downside from current levels. However, Alexander remains bullish, sticking to his Buy rating and advising investors to “stay long” for further gains.
It’s essential to conduct your own analysis before making any investment decisions, as the opinions expressed in this article are solely those of the featured investor.
Source: https://www.tipranks.com/news/stay-long-and-strong-says-top-investor-about-palantir-stock