Latest news with #BrentBracelin
Business Insider
4 days ago
- Business
- Business Insider
Palantir (PLTR) Stock Rallies After Analyst Cites Unique ‘Growth and Margin' Model
Shares of Palantir Technologies (PLTR) rallied to a new 52-week high of $160.06 this morning, after Piper Sandler analyst Brent Bracelin cited its unique growth and margin model. Bracelin initiated coverage of PLTR stock with a 'Buy' rating and a new Street-High price target of $170, which implies 9.8% upside potential from current levels. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The analyst foresees significant growth potential for the big data analytics company in its two prime markets: government contracts and U.S. commercial sectors. Palantir's shares have skyrocketed over 104% so far in 2025, backed by rapidly growing demand for artificial intelligence (AI). While other analysts remain skeptical of PLTR's sky-high valuation, Bracelin appears even more optimistic about Palantir's future prospects. Palantir Has a Unique Growth and Margin Model The analyst noted that Palantir has a 'one-of-a-kind' growth and margin model, with potential to reach $24 billion in annual run-rate by 2032. Bracelin added that both of Palantir's end markets, government and U.S. commercial customers, have a total addressable market (TAM) of around one trillion dollars each. He also recommends that investors watch the stock and buy shares on dips, since he views the company as one of the biggest winners of the AI revolution. According to Bracelin, the company currently has a roughly $4 billion revenue run-rate and a free cash flow margin exceeding 40%. He forecasts that revenue from Palantir's U.S. government business could exceed $10 billion by 2030, with its U.S. commercial business reaching $5 billion in revenue by the decade's end. Palantir's U.S. Business Is Expected to Explode As shown by Palantir's KPI data from Main Street Data, the company's government and commercial segments are experiencing robust growth, with the government segment on a significant upward trajectory. During Q1FY25, Palantir's U.S. government revenue grew 45% year-over-year, while U.S. commercial revenue grew 71% compared to the prior year period. The company's strategic focus on AI-driven solutions is driving substantial gains, particularly in the U.S. market, and this momentum is expected to continue into the future. Is PLTR Stock a Buy, Hold, or Sell? Currently, analysts remain cautious about Palantir's long-term outlook. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 10 Holds, and three Sell ratings. Also, the average Palantir price target of $109.50 implies 29.3% downside potential from current levels.
Yahoo
4 days ago
- Business
- Yahoo
Palantir stock: Why this analyst says it's an AI winner
Shares of Palantir (PLTR) are up about 110% so far in 2025. But despite the high valuation, Piper Sandler equity research analyst Brent Bracelin still initiated coverage of the stock with an Overweight rating and a $170 price target. Hear him explain why in the video above. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Brent. It is always great to see you. So let's get right into this Brent. You initiate pound here with an overweight, you're a believer Brent and a new platform powering the AI revolution. You say, just walk us through why this is a Brent buy. How do you explain it to your clients? Yeah. Most expensive um stock on our coverage list, uh, at 52 week highs. Why are we overweight? Why do we like this business? And I, I think it's important to note that one, our price targets are, are kind of one year out and, and, and two, we, we've seen the stock that, that's acted very volatile, right? Uh, 12 20% to 29% drawdowns over the last 5 years. Um, you've had the stock down 12% the day after earnings and Q1. But we don't really think that's all that important. What really matters is how big this company can get. And, and that's where we spend a lot of our due diligence and a lot of our time trying to understand what is Palantir, what do they do? Why is it so special? And in the end, uh, we really think this is a secular AI winner. We're going to put it in the same camp as private AI several winners like an anthropic or an open AI for a different reason. And what they do that's special is they really have created a platform that's going to help help people build new AI applications. And the popularity of that is what was talking to me. We did some due diligence, um, uh, at, uh, in June, we went to a Databricks conference, we went to a SAP Sapphire conference, we're talking standing room only for large enterprise customers that want to do more, learn more, engage with, uh, with Palantir. If you look at Palantir, say 5 years ago, they were competing in some cases with the likes of a Databricks. They were competing in some cases with the likes of Accenture and Deloitte. These companies now have turned from competitors to partners. And so I really think that there is a sea change relative to the opportunity around Palantir. Does that mean the stock is going to go straight up from here? Probably not. There's going to be volatility. There's going to be lots of opportunities to get involved here, but we do think this is going to be one of the key app platforms. It's addressing two trillion dollar separate uh, distinct markets, common platform, common or shared R&D, but two really big secular opportunities in defense and uh, enterprise. The pushback as you well know, Brent. I, I want to get your thoughts on this has been on valuation. Um, you know, I talked to Brent Till over at Jeffries and you know Brent, smart guy like yourself. And I remember Brent telling me, listen, he likes the company and he likes the technology and listen, the fundamentals he says look solid. But I think he actually referred to it as an irrational valuation. It, it's just too pricey, he said, which is why he has the equivalent of a cell on it. How do you respond to that Brent? Listen, there's no doubt this is a very, very richly valued company. It's the most highly valued company in the space. And so what you have to underwrite is the long term. And the long term isn't a straight line up. There's variances and that's what we're kind of betting on. Is you're going to get a chance to buy the stock lower, but it should be a stock that you can buy. Um, this is a company now that is uh, top 25 waiting in the S&P 500. So one way to cheat is you can buy the index and take a small ownership stake in, in Palantir without taking that valuation risk, right? Company specific risk. So if you own the index, that's me 500 index, you own a little bit of Palantir. Our view is the next year, there will be opportunities, there'll be buying opportunities, be patient. Uh, but this has the potential we think uh, to be a AI secular winner, it'd be one of the key platforms. We're talking about a sector looking at cloud software where there are zero, 0 30% public growers next year. Um, we think Palantir can be in a, in a universe of one. So yes, we're trading this a little differently. We're looking kind of at the lens of what could this be worth? What's the art of the possible? Uh, if you're not comfortable with looking out 5 or 10 years, it's going to be really hard to justify evaluation on this one.
Yahoo
5 days ago
- Business
- Yahoo
Palantir Stock Offers ‘One of a Kind Growth.' Should You Buy PLTR Here?
Palantir (PLTR) shares are extending gains today after a Piper Sandler analyst initiated coverage of the big data analytics firm with an 'Overweight' rating. In his research note, Brent Bracelin announced a $170 price target on PLTR, indicating potential upside of another 8% from here. More News from Barchart This Self-Driving Car Stock Is Surging on a Major Nvidia Boost UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. UNH Stock Falls as UnitedHealth Confirms DOJ Probe. How Should You Play Shares Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Bracelin's bullish call is significant given Palantir stock is already up some 150% versus its year-to-date low set in mid-January. Piper Sandler Downplays Valuation Concerns in Palantir Stock Brent Bracelin agreed that a forward price-earnings (P/E) multiple of more than 400x on PLTR shares makes them a 'high-risk' investment. But investors should own them, nonetheless, since they offer a 'one-of-a-kind growth plus margin model that if proven durable could grow into a $24 billion run-rate by 2032,' his reported added. The Piper Sandler analyst dubbed Palantir stock's explosive rally over the past three months a 'rise of the phoenix moment,' emphasizing that valuation alone shouldn't define this AI 'all-star.' PLTR Shares Could Extend Gains After Q2 Earnings on August 4 On Friday, the investment firm also dubbed Palantir shares a 'secular winner' within the artificial intelligence space. According to Brent Bracelin, the Nasdaq-listed firm will push further to the upside as it continues to gain share 'across two $1-plus trillion total addressable markets.' Piper Sandler's bullish note arrives only a week before PLTR is scheduled to report its earnings for the second quarter. Consensus is for the company to earn $0.08 on a per-share basis, more than 150% higher than the $0.03 a share it earned in the same quarter last year. If the Denver-headquartered firm beats these estimates, it could validate Piper Sandler's positive view and trigger another leg up in PLTR stock. Wall Street Recommendation: Pull Out of Palantir Now Investors should note, however, that other Wall Street firms recommend pulling out of PLTR shares following their meteoric rally since early April. The consensus rating on Palantir stock currently sits at 'Hold' only with the mean target of about $107 indicating potential downside of more than 30% from current levels. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
13-07-2025
- Business
- Yahoo
Workday (WDAY) Just Got Downgraded—Here's Why Analysts Are Worried About AI
Workday, Inc. (NASDAQ:) is one of the . On July 10, Piper Sandler analyst Brent Bracelin downgraded the stock from 'Neutral' to Underweight with a price target of $235.00. The rating downgrade follows major changes in CIO spending priorities driven by artificial intelligence. 'Our latest CIO survey reinforced a bullish spending backdrop for AI infrastructure while elevating risks to the broader application category,' analysts wrote. Concerns regarding declining application software spending and potential pricing pressures were noted as factors particularly behind the downgrade for Workday. 'Per employee pricing risk coupled with eroding appetite to invest materially in applications could further pressure growth at WDAY.' A graphical representation of the S&P Total Market Index on display above the heads of a team of investors strategizing investments. The firm believes that Workday may be a 'potential AI casualty on headcount drag,' with 52% of CIOs expecting AI to reduce staff, up from 39%. Since the company's software helps enterprises manage workforces, a 'headcount drag' related to AI may prove to be negative. Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications. While we acknowledge the potential of WDAY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
20-06-2025
- Business
- Yahoo
SAP (SAP) Rated as ‘Overweight' at Piper Sandler on Growth Prospects
SAP SE (NYSE:SAP) is . On June 16, Piper Sandler analyst Brent Bracelin initiated coverage with an 'Overweight' rating EUR 350 price target. The overweight rating underscores expectations for the company's earnings growth, followed by significant expansion in the valuation multiples. drserg/ The analyst reiterated the company's bullish rating, positioning itself as a leader in the rapidly expanding cloud segment within the software industry. Consequently, the analyst expects the shift towards the cloud service sector to help SAP sustain double-digit revenue growth while enhancing margins significantly. The robust growth is expected to lead to an annual increase in free cash flow of between 15% and 20% through 2030. SAP SE (NYSE:SAP) is a company that develops enterprise software to manage business operations and customer relations. It's a leading Enterprise Resource Planning (ERP) software provider, helping companies streamline their processes, manage data, and improve communication between departments. While we acknowledge the potential of SAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None.
