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.
Jefferies Flags Palantir's "Unsustainable Premium" Amidst 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…

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