Shares of Palantir Technologies Inc (NASDAQ:PLTR) rallied in early trading on Tuesday, after the company reported upbeat second-quarter results.
Here are the key analyst takeaways:
- Cantor Fitzgerald analyst Thomas Blakey maintained a Neutral rating, while lifting the price target from $138 to $156.
- DA Davidson analyst Gil Luria reiterated a Buy rating, while raising the price target from $175 to $200.
- Rosenblatt Securities analyst John McPeake reaffirmed a Buy rating and price target of $225.
Check out other analyst stock ratings.
Cantor Fitzgerald
Palantir reported "another exceptional quarter," with revenue growing 93% year-on-year to $1.94 billion and adjusted earnings of 41 cents per share coming in well ahead of consensus of 30 cents per share, Blakey said in a note. He added that upside in the quarter was driven by:
- Accelerating US demand across both Commercial and Government segments
- Broadening AIP (artificial intelligence platform) standardization
- Continued operating leverage
Management announced its largest-ever full-year raise, taking its revenue outlook to $8.150–$8.158 billion, representing around 82% year-on-year growth, the analyst stated. "We continue to believe Palantir remains a leading beneficiary of secular AI growth trends, delivering tangible value for customers, evidenced by industry-leading accelerating growth and profitability," he further wrote.
DA Davidson
Palantir beat expectations with accelerating revenue growth, driven by "parabolic" US demand for AI solutions, Luria said. The company’s results were unprecedented, as revenues beat expectations by around $136 million and revenue growth accelerated to 93% year-on-year from the previous quarter’s 85%.
Palantir’s U.S. business signed 38 of the company’s 44 new customers in the quarter.
"Palantir has several competitive advantages over all other software companies, which is becoming more pronounced in the era of AI helping the company provide guidance substantially above expectations," Luria wrote.
Rosenblatt Securities
Palantir beat "our Street-high revenue forecast" of 86% year-on-year growth, McPeake said. Revenue growth of 93% year-on-year was driven by US commercial growth of 149%, he added.
The company’s adjusted free cash flow grew 115% year-on-year to $1.2 billion, to a free cash flow margin of 63%, the analyst stated. Palantir’s enterprise operating system positions the company "to disproportionately benefit from the rollout of AI in businesses and governments worldwide," he further wrote.
PLTR Price Action: Shares of Palantir had risen by 29.22% to $162.36 at the time of publication on Tuesday.
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