Palantir: Huge growth vs the rather high valuation
The data analytics specialist continues to ride an unprecedented wave of success, judging by the figures. Still, ambitious hopes for the future and harsh reality collide, as Palantir remains a high-flying stock with a lofty valuation despite its impressive results. That valuation is likely to pose a fundamental dilemma for every investor.
In the third quarter, revenue surged by 96% to USD 2.3 billion, while earnings per share of USD 0.44 also clearly exceeded average analyst estimates. This momentum was driven primarily by the US private sector, which recorded an extremely strong increase of 148% to USD 984 million, surpassing the traditional business with US government agencies (USD 953 million) for the first time.
Nevertheless, the stock market was recently unimpressed and sent the shares tumbling after the quarterly figures. With an enterprise value of 65 times revenue, annual growth of 40% to 45% is essential over the coming years to continue justifying this valuation now and in the future. While the strong operating momentum underpins the broad technological moat, ambitious multiples call for a cool head and more favourable entry opportunities.
From a purely technical perspective, another high may already have formed, pointing to prices heading towards USD 120-125. Michael Burry is also short, and that should give the bulls a little food for thought too.
Evotec: Restructuring programme and Vertex partnership
At the Hamburg-based drug discovery company, everything revolves around radical restructuring after months of share price declines and deep cuts. The operational turnaround and the strategic Vertex partnership are the only guarantees of a targeted reversal.
Group revenue in the third quarter and the first nine months of 2026 amounted to EUR 164.9 million and EUR 465.0 million, respectively, even slightly exceeding market expectations. After nine months, however, revenue fell 13.1% to EUR 465.0 million, while adjusted EBITDA remains deep in the red at a loss of EUR 44.3 million.
The newly launched “Horizon” cost-saving programme is showing early results. It is expected to deliver annual savings of EUR 75 million by the end of 2027, but analysts have rated the medium-term targets through to 2030 as extremely ambitious. While RBC maintains its Outperform rating on the shares with a price target of EUR 5.00, Berenberg retains its neutral Hold rating after slightly raising its target to EUR 3.75.
Evotec is showing initial signs of life, but has yet to prove that the painful cost reductions and lower capital expenditure are bearing lasting fruit.
Nevertheless, the first signs of hope can currently be seen in the chart. The share price could already be anticipating something, especially as it has broken above the 50-day SMA. Even amid the current general market turbulence, Evotec is holding up quite well against the trend. This could indicate the shares are heading toward EUR 4-4.50. An exciting story!
Lahontan Gold: On the way to production! Are the shares gearing up for a major rebound?
Away from the major AI, biotech and chip themes, Lahontan Gold is advancing its flagship Santa Fe project in Nevada with sustained drilling zeal. With a compelling economic foundation behind it, the company is pushing ahead with a clear focus on starting production in 2027.
The updated PEA presented in October provides impressive key figures for the mining project, planned to run for 11 years: a post-tax NPV5 of USD 820.0 million and an internal rate of return of 40.1% underscore its economic robustness. With average annual production of 91,900 gold-equivalent ounces and extensive drilling results from over 13,334 m in the current year, the operational foundation is also sound.
The shares are trading within the consolidation movement’s trend channel, which has been pointing downwards since October. The shares are currently trading at CAD 0.27, which is in the middle of a strong horizontal support zone. Below this, too, strong support lines are staggered all the way down to the CAD 0.23 level. If the price manages to rise towards CAD 0.30, or better still CAD 0.31, the consolidation channel should be overcome, and the rebound should begin. It could then head towards CAD 0.40. A definitive breakout is likely at CAD 0.45 and above; then it should head towards CAD 0.50-0.55, followed by a further rise towards CAD 0.75, with this target derived from the first-wave move from CAD 0.12-0.50.
With solid key figures and excellent prospects, Lahontan Gold could soon regain significant momentum. An attractive opportunity with good return potential could emerge here at the low consolidation level.
Conclusion
Palantir shines with rapid AI growth, but its demanding, exceedingly high valuation leaves little room for disappointment. Evotec is battling its way through a painful restructuring, in which the successful implementation of the cost-saving programme will determine its long-term success, and has recently strengthened against the trend, which should be viewed positively. Lahontan Gold presents itself as an interesting mine developer in a top jurisdiction, now trading at an attractive level and offering rebound potential.
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