We are adding to our Palantir position at current levels.($208)
1) As with all new positions, we scale in gradually—starting small and increasing exposure as the opportunity becomes more compelling (share price goes down).
2) Based on our analysis, the stock trades at ~70x forward earnings with a PEG ratio around 1.0x.
3) While not optically cheap, this valuation appears reasonable for a company delivering explosive growth.
4) At the current share price, the PEG ratio is trending quickly below 1.0x, improving the risk/reward profile.
5) We believe consensus estimates are too conservative and expect upward revisions as early as May 2026 following the next earnings call.
Alex, Palantir’s CEO, projected strong confidence—and rightly so, given his consistent track record of materially exceeding even his own aggressive earnings guidance.
