tiprankstipranks

‘I’ll Sell at $200,’ Says Top Investor on Palantir Stock

‘I’ll Sell at $200,’ Says Top Investor on Palantir Stock

Palantir (NASDAQ:PLTR) has been one of the biggest beneficiaries of the AI boom in recent years, helping both sovereign and corporate clients use AI to improve real-time decision-making. With its roots in defense and security, the company’s share price tends to rise when geopolitical tensions escalate. Not surprisingly, PLTR reached a new all-time high last week, climbing 437% over the past twelve months.

Elevate Your Investing Strategy:

Though there are few brave souls ready to question Palantir’s winning business model, there is plenty of concern regarding its inflated valuation. Top investor James Foord seems to fall somewhere in the middle – still optimistic, but his enthusiasm has its limits.

“If PLTR stock reaches $200, I plan to sell a significant portion of my holdings to lock in profits,” shares the 5-star investor, who is among the top 2% of TipRanks’ stock pros.

Foord believes that PLTR’s is fairly valued at present, but that doesn’t mean that it will not continue to rise further. The investor notes that the market does not always follow a logical path, and this irrationality cuts both ways.

“Just as Palantir was once grossly underappreciated by the market back in 2022, I do believe we are getting carried away now,” adds Foord.

The investor notes that PLTR’s Price-to-Earnings ratio of 300x is the highest ever for a mega-cap, while its Price-to-Sales ratio is also inflated, with a multiple above 100x. And yet, despite the “frothy” valuation, Foord spots some catalysts that could push PLTR even higher.

These include global flashpoints such as the fighting in the Middle East, the Russia–Ukraine war, and rising tensions between the U.S. and China. In addition, Palantir’s upcoming earnings report in August could provide further tailwinds, while overall market conditions and potential rate cuts may offer another boost.

Summing up, though Foord is ready to stick around for the time being, he has a clear endgame in mind: “I maintain a buy rating on the stock, but I might be forced to sell soon.” (To watch Foord’s track record, click here)

On Wall Street, opinions on PLTR remain divided. The stock holds a Hold (i.e., Neutral) consensus rating, based on 3 Buys, 10 Holds, and 4 Sells. The bears appear to be in the driver’s seat, with the average 12-month price target standing at $104.27, implying a downside of ~24% from current levels. (See PLTR stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Disclaimer & DisclosureReport an Issue

1