Veteran trader who correctly predicted Palantir's rally unveils new price target

Alex Karp made the list.

The CEO and co-founding father of Palantir Technologies (PLTR) was recently added to the Forbes Four hundred, a list published by Forbes magazine of the wealthiest Four hundred Americans ranked by net worth who own assets within the U.S.

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Forbes said that no matter it requiring extra cash than ever to make the annual list, which Malcolm Forbes started in 1982, "23 billionaires were ready to elbow their way into the ranks this year."

"Palantir’s meteoric upward push has earned CEO Alex Karp a spot on The Forbes Four hundred list of richest Americans for the first time, worth an estimated $3.6 billion, as a result of the his Palantir stake and $1 billion or so in cash from stock sales as of September 1, the day we finalized net worths for our list," Forbes said.

The publication raised questions in regards to the data analytics company’s valuation. It noted that best a handful of the five of the 20 analysts who cover Palantir give the group a “buy” rating, with the remainder split between hold and sell ratings.

Forbes reporter Phoebe Liu said that Karp’s addition to the list and Palantir’s too-high valuation show that what he and his company stand for—Western values, American defense, and man made intelligence—are especially relevant in this day’s economic, cultural, and geopolitical landscape.

Analyst says he is 'more bullish' on Palantir

"It’s worth staring at what happens with the ever-controversial, ever-secretive (no matter being publicly traded!) firm within the arriving months and years," Liu said.

Karp, who appeared on “Real Time with Bill Maher" last month, is reported to be an eccentric leader who wears brightly colored athletic wear, practices martial arts, keeps Tai chi swords, and can solve a Rubik's Cube in lower than 3 minutes, consistent with an MSN profile.

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After the TV interview, TheStreet Pro analyst Ed Ponsi wondered if Karp was the following "rock famous person CEO" and noted that the executive "placed on a good performance, while he struggled to coherently provide an evidence for what it is some distance his company in actuality does."

"In spite of," Ponsi said. "This was Karp’s moment on the huge stage. Like Jimi Hendrix at Monterey or Bob Dylan at Newport, Karp has just entered most people’s consciousness."

The corporate received early backing from CIA investment arm In-Q-Tel and does contract work for government agencies comparable to the Department of Defense, the FBI, and the Danish National Police.

Palantir's sales are largely driven by its work helping the U.S. government with its counterterrorism efforts. The data analysis software provider has also expanded into managing, interpreting, and reporting data for big companies.

Karp and his company joined one more list recently when Palantir, which went public in 2020, joined the S&P 500, replacing stalwart American Airlines (AAL) .

On Sept. 26, Wedbush analyst Daniel Ives raised the firm's price target on Palantir to $45 from $38 while keeping an outperform rating on the shares, consistent with The Fly.

Ives said that he is "more bullish" on Palantir going forward, noting that his updated channel checks indicated incrementally more enterprises are strategically discussing how they will deploy the corporate's Artificial Intelligence Platform right through 2025.

The analyst said the increased price target reflects higher self belief in Palantir's enterprise-driven man made intelligence strategy. He added that he views this as a clear "game changer" for the Palantir story as the use cases of AI begin to take hold over the following 12 to 18 months.

Veteran trader looks to upcoming earnings report

The corporate is "in a main spot to continue expanding its pipeline/deal flow while providing more use cases coming forward to do something in regards to the foremost problems across industries," Ives contended.

Shares of Palantir are up 126% year to this point, and the stock got a jolt recently when co-founder Peter Thiel, whom Karp met at Stanford Law School, reportedly sold 12.412 million Palantir shares at a median price of $36.Eighty five per share from Sept. 27 through Oct. 1 under the 10b5-1 trading plan.

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The shares were sold through Rivendell 7 LLC, which now has roughly 34.26 million shares of Palantir remaining.

"These were all planned sales, and who may perhaps blame him after the run the stock has had?" TheStreet Pro’s Stephen Guilfoyle wrote on Oct.3. "Thiel has no longer it appears sold any of his voting shares. He, board member Stephen Cohen, and CEO Alex Karp still keep watch over the corporate."

Guilfoyle accurately predicted Palantir's stock rally, making it a top % when it was trading lower than $10 per share and continuously recommending it right through its upward push. He accurately predicted that Palantir's stock price may perhaps finally reach $36.

The veteran trader, who has been trading stocks for the rationale that 1980s when he worked on the New York Stock Exchange floor, noted that the corporate had entered the S&P 500 hand-in-hand with Dell Technologies (DELL) .

"Dell has tumbled 10.6% since its post-addition peak," Guilfoyle said. "We had implied that PLTR may perhaps suffer the same post-addition fate, but to this point, the stock has moved more sideways than lower."

Palantir and APA Corp. (APA) , recently announced a multi-year, multi-million-dollar extension to their enterprise agreement at the origin signed in 2021.

The agreement builds on the work deployed across APA’s global portfolio right throughout the last three years and introduces new man made intelligence capabilities with Palantir’s Artificial Intelligence Platform software.

"We now have to not any extent further had an exact target for the rationale that $36 level had been taken and held," Guilfoyle said.

It be changed. Guilfoyle unveiled a brand new $forty eight price target on Palantir this week.

The corporate is expected to report 1/3-quarter results in November, and analysts are looking out out adjusted earnings of 9 cents per share on revenue of $703.7 million.

"If that's indeed the way within which the cookie crumbles, those numbers may be good for earnings growth of 29% on revenue growth of 26%," Guilfoyle said. "Of the eleven sell-side analysts I see that post sales estimates for Palantir, all eleven have increased their estimates for the rationale that start of the 1/3 quarter."

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