Palantir Technologies Inc. (NASDAQ:PLTR) will report earnings for its fourth quarter after the bell on the 3 rd.
It is estimated that the AI-enabled analytics company will see their revenue increase by 27% year over year, while adjusted earnings should reach 11 cents per share. This represents a 37% rise.
Jim Cramer, a renowned investor and entrepreneur says that the numbers of this company could be strong enough to convince investors to drive the stock to the $100 mark.
Palantir does not pay dividends at the moment.
Wedbush agrees with Cramer on Palantir’s stock
Cramer is confident in Palantir’s CEO Alex Karp, whom he described as a “messianic character” last week during Mad Money.
The stock is a magnet for his small investor group.
Palantir Technologies was even referred to by the former hedge fund manager as “GameStop for brains”.
Dan Ives is a senior analyst with Wedbush Securities and shares PLTR’s bullish outlook.
Ives has recently increased his price target for Palantir to $90. He added that the company’s data analytics “will be on a trajectory to become the new Oracle or Salesforce in the years to come.”
Wedbush’s analyst believes that Wall Street underestimates the revenues PLTR can generate through its Artificial Intelligence Platform.
Analysts at Jefferies see a fall in PLTR from $48 to $28
However, investors should be aware that Wedbush and Cramer holds a contrary view of Palantir.
Wall Street believes that PLTR’s shares have been priced perfectly after a 12-fold gain in the last two years.
Jefferies analyst’s say that “any sign of decelerating” growth is cause for concern. This could lead to a collapse in Palantir Technologies stock price down to just $28.
The price target of the AI shares warns that the stock could fall by an alarming 65%.
The average target price for Palantir is $50, which is about 40% lower than the current share price.
The Nasdaq listed firm also doesn’t offer a dividend, which would make it more appealing to investors who are looking for income.
Why do analysts seem to be dovish about Palantir?
Investors are not happy with the inflated multiple of price to earnings on Palantir’s shares.
One must question if the conventional valuation metric captures all the future growth and earnings potential, particularly for names such as PLTR, which heavily invest in new technologies including artificial intelligence.
Investors would have missed every major rally in the technology space had they focused only on the PE Ratio.
It’s not unreasonable to assume that Palantir will have a harder time replicating its previous performance.
The company may be in “god mode” since the end of 2022, but to reach $100 next month it will need not only strong earnings but also encouraging forecasts for income adjusted from operations.
As new information becomes available, this post Palantir is dubbed ‘GameStop’s brainchild’ ahead of the Q4 report could be updated.
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