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Why is Palantir Stock Surging Today

Stock Markets Jul 21, 2022 07:46AM ET
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© Reuters Why is Palantir (PLTR) Stock Surging Today
 
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By Senad Karaahmetovic

Shares of Palantir (NYSE:PLTR) are up almost 3% in premarket Thursday trading to continue a healthy run after yesterday’s gains of over 8%.

Today’s rally has been fueled by a Raymond James analyst, who started research coverage on Palantir stock with a Strong Buy rating. His price target of $20 per share reflects an upside potential of almost 100%.

“After falling ~75% from its early 2021 peak, we see the risk/reward as compelling for a software business with a ~30% growth rate, gross margin structure in the 80% range with escalating contribution margins, and a balanced commercial and government customer mix,” the analyst told clients in an initiation note.

At the cure of his positive thesis on Palantir is a TAM of over $120 billion. Palantir is also described as a “cultural unicorn”.

“Our use of the term 'unicorn' is not to be confused with highly valued private companies. In this case, we see Palantir as a cultural unicorn, almost mythical, because we can’t think of many multi-billion dollar tech franchises that reject the Chinese market or rebuff China as a low-cost source of labor/ manufacturing.”

The analyst also sees a “strong financial model” shaped by fast growth, high gross margin, and increasing contribution margins.

Why is Palantir Stock Surging Today
 

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Comments (4)
Barak David
Barak David Jul 21, 2022 8:35AM ET
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3% you literally wrote an article about this?
Stephen Fa
Stephen Fa Jul 21, 2022 8:20AM ET
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A tech company with great fundamentals
Joe Rizzuto
Joe Rizzuto Jul 21, 2022 7:52AM ET
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agree. strong buy on pltr. or you can wait until it goes up 50% for confirmation...
Cristiano Dangelo
Cristiano Dangelo Jul 21, 2022 7:52AM ET
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Yes!
 
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