Palantir: 3 Reasons To Buy (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• I missed the initial move on Palantir as I had a 'neutral/hold' rating. But after reviewing Q1 FY23 and the company's AIPCon, I am changing my stance to a 'buy'.
• Palantir is poised to benefit from accelerated US Commercial adoption as customer counts and average pricing per customer metrics show sharp improvement.
• 2 more quarters of GAAP net income profitability can unlock institutional and passive investor flows.
• Management has a track record of beating expectations, consistently surprising on revenue guidance as well as actual revenue and margin prints.
• Palantir is at a slight valuation premium relative to its historical multiples. But so long as the operating momentum and positive surprises continue, I think the stock will do well.

Read the full article here.