Palantir: Expectations Are Finally Getting Priced In (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

• Despite positive fundamental developments such as a $38 million deal win and qualifications to do work with more sensitive government data, there are no consensus EPS estimate upgrades.
• Palantir will be joining the Nasdaq 100 index. But I think the trade opportunity for this has already played out since PLTR initially switched from a NYSE to Nasdaq listing.
• PLTR's recent price appreciation is led more by multiple expansion than earnings growth expectations, which have remained flat.
• Relative technicals are at a key resistance level albeit without any slowdown of bullish momentum.
• Overall, I believe PLTR stock's expectations are finally getting priced in. Missing out on a positive revenue guidance surprise in the next quarter is a key risk to my 'Neutral/Hold' view.

Read the full article here.