Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, Jefferies reiterated its Underperform rating on Palantir Technologies Inc . (NASDAQ:PLTR) with a steady price target of $28.00. The firm’s analyst, Brent Thill, provided a cautious outlook on the company’s valuation and its growth prospects. This caution appears warranted, as InvestingPro data shows PLTR trading at a steep P/E ratio of 371x and Price/Book of 40x. Thill pointed out that Palantir’s stock is currently trading at a multiple that is more than double that of its nearest software peer, based on the next twelve months’ (NTM) revenue. According to InvestingPro’s Fair Value analysis, the stock appears significantly overvalued at its current price of $79.76.
The analyst highlighted the high expectations set for the company as it faces its fourth-quarter results. According to Thill, Palantir is approaching this period with the challenge of surpassing relatively easy comparable figures from the previous year. Recent data from InvestingPro shows revenue growth of 24.52% and impressive gross margins of 81.1%. He suggested that any indication of growth not accelerating might lead to a further compression of the company’s stock multiple. InvestingPro subscribers have access to 20 additional key insights about PLTR’s valuation and growth metrics.
Despite acknowledging the solid fundamentals of Palantir’s business, including its strong financial health with a current ratio of 5.67 and moderate debt levels, Thill expressed skepticism regarding the company’s ability to meet the aggressive growth targets necessary to justify its current stock price. He noted that Palantir would need to accelerate its growth to 50% for the next four years and trade at 13.5 times its calendar year 2028 estimated revenue just to maintain its current stock valuation of $181.69 billion.
In his analysis, Thill applied a future revenue multiple to determine the price target, setting it at 15 times Palantir’s calendar year 2026 estimated revenue. This represents a 32% premium compared to the large-cap average multiple of 12 times. Despite the premium, the target reflects the analyst’s conservative stance on the stock, suggesting that the market’s current expectations may be overly optimistic.
In other recent news, Palantir Technologies has been the focus of several significant developments. Wedbush Securities has increased its price target on Palantir’s shares from $75 to $90, reflecting confidence in the company’s artificial intelligence (AI) strategy. Meanwhile, Raymond (NSE:RYMD) James has revised the company’s fourth-quarter earnings estimates due to the vesting of approximately $120 million in stock appreciation rights. Despite this, projections for adjusted EBITDA and adjusted earnings per share remain unchanged.
Palantir also secured a significant contract with the U.S. Army, valued at approximately $400.7 million. Analysts from various firms have weighed in on the company’s performance. Morgan Stanley (NYSE:MS) downgraded Palantir to an Underweight rating due to valuation concerns, while UBS initiated coverage with a neutral rating and an $80 price target.
On a different note, Chinese AI startup DeepSeek’s chatbot was found to have a low accuracy rate in delivering news, according to an audit by NewsGuard. Despite this, the chatbot quickly became the most downloaded app in Apple (NASDAQ:AAPL)’s App Store. These are some of the recent developments involving Palantir Technologies and DeepSeek.
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