Gold prices hold sharp gains as soft US jobs data fuels Fed rate cut bets
On Wednesday, Jefferies analyst Brent Thill reiterated an Underperform rating and a $60.00 price target on Palantir Technologies Inc . (NASDAQ:PLTR), highlighting several key points from the company’s annual report. While Thill noted concerns about Palantir’s modest 5% headcount growth, InvestingPro data shows the company maintains impressive gross profit margins of 80.25% and has achieved a remarkable 409.9% return over the past year. According to InvestingPro’s comprehensive analysis, which includes 21 additional key insights, the stock appears to be trading above its Fair Value.
The analysis by Jefferies pointed out that while U.S. revenue for Palantir grew by 38% in the calendar year 2024, international revenue remained flat. This disparity underscores the uneven geographical growth of the company, with U.S. revenue now comprising 66% of the total revenue mix. InvestingPro analysis reveals overall revenue growth of 28.79% in the last twelve months, with total revenue reaching $2.87 billion. The company’s financial health score is rated as "GREAT" by InvestingPro’s comprehensive evaluation system.
Additionally, changes in executive trading plans were detailed. Palantir’s CEO, Alex Karp, and President, Stephen Cohen, both adopted Rule 10b5-1 trading arrangements on December 11, 2024, which allow for the potential sale of Class A common stock up to 9.975 million and 4.06 million shares, respectively. These arrangements are set to last until September 12, 2025, or until all transactions are completed or expire.
The report also mentioned the departure of Palantir’s Chief Accounting Officer, Heather Planishek, who will step down at the end of the day on February 24, 2025. She will continue as an advisor to assist with the transition, and David Glazer, the company’s Chief Financial Officer and Treasurer, will take over her responsibilities on an interim basis starting February 25.
Despite the flat growth in international markets, Palantir has seen its top customers increase their average trailing twelve months (TTM) revenue, with the top 20 customers generating $64.6 million in CY24, up from $54.6 million in CY23. This represents an 18% year-over-year growth. The company also added 214 net new customers in CY24, bringing the total to 711. InvestingPro subscribers can access detailed financial metrics showing the company’s strong liquidity position with a current ratio of 5.96 and minimal debt levels. For deeper insights, InvestingPro offers an extensive research report covering all crucial aspects of PLTR’s performance and prospects.
Finally, Thill mentioned that Palantir’s exposure to special purpose acquisition companies (SPACs) continues to decrease, with the total value of SPAC contracts falling 10% year-over-year to $341 million by the end of CY24. This includes a decrease in revenue recognized from SPACs, down to $52 million in CY24 from $87 million in CY23.
In other recent news, Palantir Technologies Inc. reported revenue and operating income that surpassed market expectations, despite missing its three-year revenue projection. The company’s financial outlook for 2025 anticipates revenues of $3.75 billion, which exceeds the consensus estimate of $3.51 billion. In response, Wedbush analysts increased their price target on Palantir shares to $120 from the previous $90, reiterating an Outperform rating. Similarly, BofA Securities analyst Mariana Perez Mora raised her price target to $125 from the previous $90, maintaining a Buy rating.
In contrast, William Blair maintained an Underperform rating on the stock, citing concerns over the company’s valuation. However, the firm acknowledged several factors that could potentially drive Palantir’s stock higher, including market momentum and investor optimism.
In other developments, CEO Alex Karp’s recent interview on CNBC and subsequent promotion by Elon Musk sparked discussions about potential growth opportunities for Palantir. Furthermore, an upcoming live ’ask me anything’ (AMA) session with Karp is expected to provide clarity on the company’s strategic direction and operational performance. These events reflect recent developments in the company’s engagement with investors and the broader community.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.