Jefferies Flags Palantir's "Unsustainable Premium" Amidst Insider Selling
Despite strong Q3 results, Jefferies maintains an 'Underperform' rating on Palantir, citing high valuation and significant insider selling.
Despite Palantir's (NYSE: PLTR) strong Q3 2024 financial results and the positive momentum surrounding AI and the incoming Trump administration, Jefferies maintains a cautious outlook, highlighting concerns about the stock's valuation and significant insider selling. Palantir exceeded expectations with $725 million in revenue for Q3, representing a 30% year-over-year growth. This aligns with the company's projected growth target through 2025. However, Jefferies analyst Brent Thill expresses concerns about the stock's rapid price appreciation: "PLTR is trading at an unsustainable multiple, and insider selling is backing that up. PLTR is up 257% YTD on multiple expansion." Thill points out Palantir's high valuation relative to other software companies: "PLTR trades at 43x CY25 revenue, well over 2x the next highest software name." He also notes a shift in ownership from retail to institutional investors following Palantir's inclusion in the S&P…