High Valuations Pose Challenge for Palantir as Strong Revenue Growth Continues

Based on the latest information and analysis provided, the article suggests that while Palantir Technologies (NYSE: PLTR) continues to show strong revenue growth and profitability metrics, its elevated valuation multiples present a concern. Although the company’s Q1 results reflected an acceleration in revenue growth in both its Government and Commercial segments, the stock’s valuation multiples of approximately 65 times this year’s expected earnings per share (EPS) and 54 times next year’s expected EPS are higher than last year’s levels. Therefore, while the author remains optimistic about Palantir’s long-term prospects, they recommend a neutral stance on the stock at present and suggest waiting for a potentially more attractive entry point instead of buying on the recent dip. The article also mentions that Wall Street has a Moderate Sell consensus rating for PLTR stock, with an average target price suggesting 4.5% downside potential. However, the most profitable analyst covering the stock is Mariana Perez from Bank of America Securities, with an average return of 61.42% per rating and a 92% success rate.