Citi Analysts Name Three Tech Stocks to Buy Ahead of Earnings – Microsoft (NASDAQ:MSFT), Palantir Technol
Citi Sees Figma Stock Jumping 76%
Figma stock has been in a free fall since its Initial Public Offering in July last year. After initially soaring to $142, the stock has dropped to $21, and Citi analysts believe that it will jump to $36. Wells Fargo’s Michael Turrin has a similar target, which is higher than the consensus target of $32.
The general view among Citi and Wells Fargo is that Figma’s business is still growing despite the rising fears of AI disruption. The recent earnings report showed that its revenue jumped by 46% YoY to $333.4 million, with management guiding to an annual revenue growth of 35%. It boosted its guidance by $55 million.
Palantir Stock May Jump 77%
Palantir Technologies stock remains in a bear market, falling by nearly 40% from its all-time high. Despite this plunge, Citi analysts believe that the stock will jump to $225, representing a 77% surge from the current level.
Palantir’s business continues doing well this year despite the recent retreat, with its revenue and profitability growth accelerating. Its revenue jumped by 85% in the first quarter to $1.63 billion, with its US figure growing by 104%.
Demand for its services is rising, with the company closing 206 deals worth $1 million and 72 worth at least $5 million. It is also a major contributor to Donald Trump’s Golden Dome project.
Palantir’s annual revenue is projected to jump by 72% to $7.72 billion, followed by $11.2 billion. While its P/E multiples are high, the company has a Rule-of-40 multiple of 145%, a sign that it is balancing its revenue growth with growth.
Microsoft Stock to Jump by 61%
Citigroup has a target of $620, up by 61% from the current level. It believes that the company’s growth has more room to run, while its valuation has become cheap. Its forward P/E ratio has dropped to 22.2, lower than the technology sector average of 33, and its five-year average of 30.
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