Palantir Stock Detailed Analysis And Forecast In 2021 And Beyond

The stock began to pick up the pace since November, as the U.S. election results and vaccine efficacy reports came out. The stock gained 405.62% from its all-time low to hit its all-time high of $45 on January 27, 2021. 

However, the $45 mark has formed a resistance level, as the stock is struggling to break-out of this price barrier. The stock has declined 46.71% since hitting its all-time high in January. The stock is currently trading above its 200-day moving average of 22.42, but below its 50-day moving average of $27.90, indicating a sideways drift. 

Based on forecasts of seven analysts on Tipranks, PLTR is expected to gain 6.21% soon to hit $25.83. The stock has a high price forecast of $40, and a low forecast of $15. Despite the potential upside, only two of the seven analysts have rated PLTR as a “Buy” stock, while four rated it as a “Sell” stock, and one rated it “Hold”.  

Analysts at Goldman Sachs upgraded their view regarding Palantir stock from “Neutral” to “Buy” in February, and the Citigroup team downgraded it from “Neutral” to “Sell” in January. 

Palantir Technologies: Financials and Consensus Estimates 

PLTR crossed the $1 billion revenue mark in 2020 by generating $1.09 billion in fiscal 2020. The stock’s gross profit stands at $740.13 million, which translates to a gross profit margin of 67.74%. However, the company is yet to generate any bottom-line profits. Its trailing-12-month net income and EPS values are negative $1.17 billion and $1.20 respectively. 

While the company’s cash balance at the end of fiscal 2020 of $2.01 billion represents adequate liquidity, the stock is bleeding cash from its operations. Its net operating cash flow balance is negative $296.61 billion. Moreover, PLTR’s trailing-12-month return on equity margin is negative 139.76%. 

 According to Yahoo Finance estimates, PLTR’s EPS is expected to decline 20% year-over-year to $0.16 in fiscal 2021, while revenue is expected to increase 35.2% year-over-year to $1.48 billion this year. The consensus estimates for 2022 indicate a 31.2% rise in EPS and a 31.1% rise in revenues. 

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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William K. 1 month ago Member's comment

Given the very secretive nature of such a large part of it's operations, how would one find any of the financial statements oor projections believable???