[Click e-Stock] "Palantir Must Prove Its Valuation Through Performance"

On December 10, Kiwoom Securities stated that the market has already priced in Palantir's future growth potential, resulting in a high share price. Therefore, in order to justify its valuation (the level of share price relative to corporate value), Palantir's future performance must grow rapidly. The target price was set at $185.8.

Kiwoom Securities highlighted that among Palantir's key performance indicators for the fourth quarter of this year, its Remaining Performance Obligations (RPO) stood at $2.04 billion, a 21.5% decrease from the previous quarter. RPO refers to the portion of contracted revenue that has not yet been fulfilled, representing the total value of services Palantir is obligated to provide to customers under existing contracts in the future.

Kim Jingu, a researcher at Kiwoom Securities, explained, "Considering that the fourth quarter usually brings a seasonal effect for Palantir-with an increase in contract expansions-these figures appear to reflect somewhat conservative estimates. If actual RPO performance does not exceed market expectations, it is necessary to consider the potential for market debates regarding Palantir's growth potential." Since RPO is a key performance indicator (KPI) that demonstrates Palantir's mid-term growth potential, Kim assessed that if actual RPO falls short of market forecasts, concerns about a slowdown in Palantir's growth could arise.

Another factor to watch is that global big tech companies are preparing to enter Palantir's business domain. Kim noted, "With many global big tech firms focusing on enhancing user-added value with the goal of achieving Artificial General Intelligence (AGI) next year, there is a high possibility that these players will enter the enterprise AI assistant and analytics solution market where Palantir operates. The resulting increase in market competition intensity could act as a risk factor. In this environment, Palantir's challenge is to consistently demonstrate the competitiveness of its ontology-based AIP (Artificial Intelligence Platform), which structurally defines relationships between data, through tangible results."