Palantir vs. SAP: Wall Street’s Divergent Views
Palantir Technologies (NASDAQ: PLTR) reported a remarkable 135% surge in its stock last year, but Wall Street analysts are cautious. Of 25 analysts surveyed, only four recommend buying Palantir, with a meager 12-month price target indicating low single-digit upside. The company’s forward price-to-earnings ratio stands at nearly 182, only surpassed by Tesla in the S&P 500, raising valuation concerns among investors.
Conversely, analysts are significantly more optimistic about SAP (NYSE: SAP). Of 15 analysts, 12 rated SAP as a “buy” or “strong buy,” projecting a 40% increase over the next year. SAP’s forward earnings multiple is 28.5, and it boasts a price-to-earnings-to-growth (PEG) ratio of 1.0, indicating a more attractive valuation compared to Palantir’s PEG ratio of 2.9.
This divergence highlights Wall Street’s caution regarding Palantir’s valuation despite its rapid revenue growth, whereas SAP’s strategic AI investments and favorable valuation metrics are gaining analysts’ confidence.
