Growth must be 'demonstrated' to justify value.

Government surveillance contractor Palantir's AI strategy under microscope by Wall Street analysts: Must 'demonstrate' growth to justify value

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Software and data analytics company Palantir Technologies (NYSE:PLTR) reported first-quarter financial results after the market closed on Monday.

Analysts expand on first-quarter earnings and what's next for the company.

Palantir Analyst: Goldman Sachs analyst Gabriela Borges has a neutral rating and raised her price target to $14 from $13.

Mizuho analyst Gregg Moskowitz has a neutral rating and a $21 price target.

Related Link: Palantir Stock Drops Tuesday: What's Going On?

Goldman Sachs on Palantir: According to Borges, the company's bootcamp interactive workshop may be in the early stages of change.

“We believe investors will focus on the sustainability of US commercial growth to determine whether Palantir can sustain or accelerate 20%+ total revenue growth over the medium term,” said Borges. Is.”

Palantir beat analysts' revenue estimates and raised its full-year revenue and operating income guidance, the analyst said.

“We continue to see Palantir as uniquely positioned to take advantage of its core data-slicing capabilities among enterprises looking to deploy AI use cases.”

More than 915 organizations have participated in AI bootcamps to date, with 136 deals closed in the first quarter, the analyst said.

“We anticipate the extent to which Palantir can consistently convert bootcamps into bookings and revenue as we believe go-to-market is still in the early stages of formalization.”

Mizuho on Palantir: Moskowitz said the company's artificial intelligence platform showed encouraging signs.

The analyst said the first-quarter financial report was solid with “healthy revenue growth.”

“The return to government was a pleasant surprise, although the commercial beat was not entirely from strategic trade agreements,” Moskowitz said.

The analyst said the strong report and raised guidance “could help allay potential investors' concerns.”

“We believe PLTR needs to demonstrate continued strong execution and growth to justify the higher price.”

Palantir showed strong momentum for its AI platform, with strong demand from US enterprises, the analyst said.

Mgmt also reiterated that it is seeing phenomenal interest in its AIP bootcamps, which are helping PLTR to meaningfully compress the sales cycle as new customers are on-boarding and expanding. have been.”

The analyst's $21 price target is based on an enterprise value divided by a sales multiple of 18.5x for 2024 estimates and 15.5x for 2025 estimates. The premium multiple to other enterprise software companies is based on Planetair's “strong strategic positioning with large customers and potential for rapid growth in future years,” Moskowitz said.

PLTR Price Action: Palantir shares fell 14% to $21.65 on Tuesday, versus a 52-week trading range of $8.66 to $27.50. Palantir shares are up 180% over the past year.

Read next: Wedbush's Dan Ives sniffs 'golden buying opportunity' in Palantir's pullback after Q1 earnings as he praises 'Jellen-Branson-like' performance

Image: World Economic Forum on Flickr

Latest ratings for PLTR



the process



March 2022

Piper Sandler

Starts coverage on.


March 2022

Morgan Stanley


Low weight

Equal weight

February 2022



to sell

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