It’s been a rip-roaring journey over the past month or so for Palantir Technologies (NASDAQ:PLTR), which has seen its share price jump up, slip down, and inch upward once again as markets were impacted by the Iran war and subsequent ceasefire.
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The company’s initial focal point was working with the U.S. government, specifically in the areas around national security. But while U.S. government contracts still comprise the largest chunk of its revenues, Palantir has been expanding its commercial lines of business as well.
For instance, last quarter, U.S. commercial sales increased by 137% year-over-year to hit $507 million. It’s this dual-pronged approach that makes Palantir special, details top investor Geoffrey Seiler.
“What really sets Palantir apart from most government contractors is that the company has been able to successfully expand beyond its core government business and into the commercial sector,” states the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
In fact, Seiler now calls the company’s commercial sector “its biggest growth driver.” The investor notes that Palantir’s commercial success is based on two key advantages it brings to the table.
The first is its AIP technology. Seiler notes that Palantir makes AI models practical, while supporting “a multitude of use cases across a wide range of industries.”
The second aspect of Palantir’s commercial success, according to Seiler, is the company’s go-to-market strategy of boot camps. These work with customers to solve “actual issues,” and they have become a strong selling point, adds Seiler.
That said, the investor admits that PLTR is trading at elevated multiples. While its relatively expensive valuation remains a sticking point for some, Seiler doesn’t think that should deter investors from a company that has successfully harnessed the power of AI in both public and private settings.
“I think the company will eventually grow into its current valuation and could become one of the largest companies in the world,” he concludes. (To watch Seiler’s track record, click here)
After a long period of time on the sidelines, Wall Street is now back in the fold. With 14 Buys, 5 Holds, and 2 Sells, PLTR enjoys a Moderate Buy consensus rating. Its 12-month average price target of $194.06 points to an upside of 36%. (See PLTR stock forecast)
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.