In the dynamic landscape of stock market investments, Palantir Technologies (PLTR) has emerged as a formidable entity, capturing significant attention and accolades from seasoned analysts. Stephen Guilfoyle, a veteran analyst with roots in the New York Stock Exchange (NYSE) from the 1980s, has notably declared Palantir as “a beast” in his column at TheStreet Pro. This sentiment is backed by the company’s impressive performance, having added approximately $150 billion to its market value in the previous year, fueled by its lucrative government and corporate contracts and its strategic addition to the S&P 500 (SPX) in late September.
Guilfoyle’s analysis highlights Palantir’s financial robustness, pointing out the absence of debt on its balance sheet, which he describes as one of the strongest in corporate America for a company of its size. The Denver-based firm has shown positive operating and free cash flows, which have been on an upward trajectory, further solidifying its financial health. His confidence in Palantir was evident when he named it his top stock pick for both 2024 and unprecedentedly for 2025, marking the first time he had ever selected the same stock consecutively for his annual picks.
The stock’s performance in 2024, with a 340% increase, validated Guilfoyle’s bullish stance, showcasing his commitment to transparency by acknowledging both his successes and failures in public forecasts. His continued endorsement for 2025 underscores a belief in Palantir’s sustained growth potential.
Echoing this optimism, Wedbush analysts, led by Dan Ives, have also been vocal about Palantir’s prospects. They raised their price target to $90 from $75, maintaining an ‘Outperform’ rating. Ives has framed Palantir as the “Messi of AI,” drawing a parallel to the legendary soccer player to emphasize the company’s leading role in the AI domain. He projects a significant increase in AI spending for 2025, viewing Palantir as a pivotal player in this revolution, potentially evolving into the next Oracle (ORCL) over the coming decade. His confidence in Palantir’s strategic direction and execution capabilities suggests the company could justify even loftier valuations.
Looking ahead, Palantir is set to report its quarterly results on February 3, with expectations set high. Analysts anticipate adjusted earnings of 11 cents per share on revenues of about $777 million, which, as per Guilfoyle, would represent a year-over-year earnings growth of 37.5% and revenue growth of 28%. The positive momentum is further evidenced by all 13 top-ranked analysts revising their estimates upwards since the quarter’s start.
Guilfoyle suggests that while the $90 price target he has maintained for months might seem like a ceiling, it could instead serve as a pivot point, setting the stage for an even higher target in the $108 to $112 range. However, he cautions that this potential is yet to be fully realized, echoing a sentiment of cautious optimism for Palantir’s future in the stock market.
Price Action: Palantir’s stock closed at $78.98 on Friday, and the company currently has a market cap of $179.92 billion. So far this year, Palantir has seen a 4.4% gain. However, the company has experienced an impressive 383.06% increase in its stock price compared to the same time last year.
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