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BUZZ-PREVIEW: Palantir seen posting 26% rev growth, EPS increase

Reuters2024-11-05

** Shares of Palantir Technologies edging down 0.7% to $41.63 as data analytics firm slated to report Q3 results after the bell, and set to test lofty valuation

** For Sept qtr, Wall Street expects co to post rev of $701.1 mln, up 25.6% yr/yr, and adj EPS of 9 cents compared to 7 cents a yr-ago, according to LSEG data

** PLTR has surged ~75% since Q2 report, when co raised annual forecasts for second time this year due to generative AI boom driving demand for its software services

** In Sept, co joined the S&P 500 . Its stock has gained ~140% YTD and is third best performer in benchmark index, trailing only Vistra's ~200% gain and Nvidia's ~180% advance

** PLTR trading at ~100x next twelve months earnings vs its 2-yr avg of ~62x, per LSEG

** 20 analysts cover PLTR and recommendation breakdown is 4 "strong buy" or "buy", 10 "hold" and 6 "sell" or "strong sell" ratings

** Median PT of $29.51 implies 30% downside to stock's current levels

** PLTR options imply a 13.6% swing for the shares, in either direction by Fri, per Trade Alert data; the stock has logged an avg move of 17.1% on the day after results over the last eight qtrs

(Reporting by Lance Tupper and Saqib Iqbal Ahmed Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper.thomsonreuters.com@reuters.net lance.tupper@tr.com 1-646-279-6380))

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