Palantir (PLTR) Valuation Check After DGSI Renewal, U.S. Navy ShipOS Deal and Accenture AI Partnership

Palantir Technologies (PLTR) is back in the spotlight after renewing its long running contract with France’s DGSI and landing a major U.S. Navy ShipOS deal, moves that underscore why investors continue to show strong interest in the stock.

See our latest analysis for Palantir Technologies.

Those DGSI and U.S. Navy wins, alongside the new Accenture Palantir Business Group, are feeding into powerful momentum, with Palantir’s year to date share price return of roughly 147% and a one year total shareholder return above 150% highlighting how aggressively the market is repricing its growth story.

If Palantir’s run has you thinking about what else could surprise to the upside, this is a good moment to explore other high growth tech and AI names via high growth tech and AI stocks.

After a 148 percent year to date surge and a share price now hovering around Bank of America’s bullish target, Palantir looks priced for perfection. With growth still accelerating, is there a fresh buying opportunity, or is future upside already baked in?

Most Popular Narrative Narrative: 20.6% Overvalued

According to BlackGoat, the narrative fair value for Palantir sits well below the recent 185.69 dollar close, framing the current rally as stretched against long term assumptions.

Based on a 5 year DCF valuation and very optimistic assumptions, I value Palantir today (Feb 2024) at around 89 dollars, while price is above 110 dollars.

However, even when factoring in flawless execution and strong future growth, the stock appears overvalued following recent price surges.

Read the complete narrative.

Want to see what kind of growth story has to play out to justify this gap, and which profit and valuation levers do the heavy lifting, read on.

Result: Fair Value of $153.97 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained multiple compression or a sharp slowdown in AIP-driven commercial growth could quickly flip this bullish narrative on its head.

Find out about the key risks to this Palantir Technologies narrative.

Build Your Own Palantir Technologies Narrative

If you would rather dig into the numbers yourself and shape your own story in minutes, you can build a full narrative with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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