Palantir Closes Q1'25 With 9 Consecutive Quarters Of Growth Acceleration (Rating Downgrade)

Michael Del Monte
4.73K Followers
(11min)

Summary

  • Palantir continues to deliver strong revenue growth and margin expansion, driven by accelerating enterprise AI adoption and robust government contracts.
  • Strategic partnerships in healthcare and banking, plus the rollout of Warp Speed for manufacturing automation, position Palantir for long-term industry leadership.
  • Despite impressive growth, Palantir trades at a significant valuation premium, introducing heightened risk if growth slows or competition intensifies.
  • Given the rich premium, I am downgrading Palantir to HOLD with a $121.80 price target, reflecting a balanced risk-reward outlook at current levels.
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Palantir Technologies (NASDAQ:PLTR) continues to beat market expectations with top-line revenue accelerating to a growth rate of 39% when compared to the previous year’s quarter in q1’25, marking 9 consecutive quarters of growth acceleration. With interest in agentic AI growing across enterprises, the

This article was written by

4.73K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR, ROK, EMR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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