Hold Call on PLTR Due to Overextended Valuation

3 months ago

Parkev Tatevosian, CFA

"I've had Palunteer stock rated as a hold and following these earnings results, I will be reiterating that hold rating. It's a great company delivering excellent performance with excellent prospects for several quarters, perhaps even several years into the future, but the valuation I feel already incorporates all of those excellent prospects looking ahead several years. And so, I don't see very much upside in buying Palunteer stock today."

The speaker reiterates a hold rating on PLTR, noting that while the company delivers spectacular financial performance and growth, its stock is overvalued with a forward PE of 256. This implies limited upside potential and significant downside risk if growth metrics were to falter, cautioning investors against initiating new positions at current levels.

Related Stocks