Palantir Reports Third-Quarter Results In Line With Our Estimates; Maintain FVE; Shares Undervalued

We are maintaining our $13 fair value estimate for narrow-moat Palantir after the firm reported third-quarter results broadly in line with our expectations. Despite the near-term challenges posed by harsh macroeconomic conditions, we reiterate our belief in Palantir’s long-term growth potential. We expect the firm’s top line to become more predictable due to a continued diversification of the firm’s revenue as commercial sales increase as a percentage of total sales. Shares were hit hard upon the release, down around 7% after markets opened. With shares trading solidly below our fair value estimate, we consider Palantir as attractively priced for investors that can tolerate near-term volatility.