• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Top Trading Strategy
No Result
View All Result
Home Breaking News

Palantir Stock Is Under the Microscope Ahead of Earnings; Here’s What to Expect

by
February 16, 2022
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Before Thursday’s market action kicks off, Palantir (PLTR) will deliver fourth-quarter financials. Deutsche Bank’s Brad Zelnick expects the results will come in according to the guide, which calls for revenue of $418 million.

Related Posts

Virgin Orbit scrambles to avoid bankruptcy as deal talks continue

JPMorgan Chase can be sued by Virgin Islands over Jeffrey Epstein sex-trafficking claims

Pro Picks: Watch all of Monday’s big stock calls on CNBC

Republicans request Fed and FDIC oversight records for failed Silicon Valley Bank and Signature Bank

However, the 5-star analyst believes most of the investor focus will turn to the “sustainability and quality of growth and any initial view for C1Q22 and CY22.”

Zelnick notes that the slowdown in Government and Commercial revenue, coupled with “contribution margin compression,” is a worrying sign regarding the long-term opportunity and profitability for Palantir.

That said, after an uncharacteristic 6% drop in C3Q, based on recent deal activity and “healthy reported backlog metrics,” Zelnick is looking for a significant quarter-over-quarter uptick in C4Q Government revenue. While conceding the government business is “somewhat lumpy in nature,” the analyst continues to believe Palantir’s Government opportunity is “substantial.” While growth rates are likely to “moderate,” Zelnick believes the “magnitude of the long-term opportunity remains intact.”

But as has often been noted about Palantir, the big data specialist generates the bulk of its revenue from government contracts, which, while large in nature, means most of the sales come from just a few clients. Therefore, it is seen as essential for the company to make headway in the commercial segment for the business to ultimately succeed. Here, Zelnick is not sure the company has what it takes to make the grade.

“Despite some positive signs on new pilots, customer count and deal volume, the flow through to Commercial revenue has been underwhelming thus far,” noted Zelnick, who remains “cautious” on the Commercial side, believing the opportunity for Palantir here is “smaller than many appreciate.” The analyst sees “proprietary platforms” such as Palantir providing more of a “niche” service.

As such, with an “eye toward stabilizing growth and profitability as keys to begin rebuilding confidence,” ahead of the print, Zelnick rates PLTR a Hold along with an $18 price target. Nevertheless, following the shares’ 60% pullback over the past year, there’s upside of 27% from current levels. (To watch Zelnick’s track record, click here)

The rest of the Street is on the same page. Palantir’s Hold consensus rating is based on 1 Buy, 3 Holds and 2 Sells. Just like Zelnick’s take, however, there are plenty of gains projected still; at $21.60, the average price target suggests shares will rise ~52% in the year ahead.

It will be interesting to see whether the analysts upgrade their ratings or reduce price targets over the coming months. (See Palantir stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Next Post

The average size of a new mortgage just set a record, as home prices continue to climb

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Virgin Orbit scrambles to avoid bankruptcy as deal talks continue

by
March 20, 2023
0

In this article VORB Follow your favorite stocksCREATE FREE ACCOUNT Virgin Orbit's LauncherOne rocket on display in Times Square, New...

Read more

Virgin Orbit scrambles to avoid bankruptcy as deal talks continue

JPMorgan Chase can be sued by Virgin Islands over Jeffrey Epstein sex-trafficking claims

Pro Picks: Watch all of Monday’s big stock calls on CNBC

Republicans request Fed and FDIC oversight records for failed Silicon Valley Bank and Signature Bank

Bitcoin soars to nine-month high as investors weigh bank risks and interest rates: CNBC Crypto World

The $17 billion wipeout of Credit Suisse bondholders has not gone down well in Europe

Load More

All rights reserved by www.toptradingstrategy.net

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.