Palantir wins new target for higher street prices

When reporting earnings, companies can often deliver strong quarterly readings but fall at the guidance hurdle, and that can often lead to a muted reaction from investors with stocks subsequently declining. However, while Palantir (NYSE:PLTR) Recent results have followed this pattern, and investors have been in bullish mode following the fourth-quarter results.

Shares rose 31% in Tuesday's session as the big data company was rewarded for its strong position in the artificial intelligence game. The perception of Palantir is that it relies too heavily on government contracts, but its commercial business appears to be gaining traction with its artificial intelligence platform (AIP) driving the narrative.

In the fourth quarter, revenue rose 19.6% year over year to $608.35 million, beating Street expectations by $5.55 million. While government revenues of $324 million (up 11% year-over-year) accounted for the bulk of that, businesses were working to fill the gap. This segment's revenue recorded a 32% year-over-year increase and a 13% sequential improvement to $284 million. Meanwhile, US commercial revenues were particularly affected, rising 70% compared to the same period last year to $131 million. On the other end of the spectrum, adjective. EPS of $0.08 was in line with expectations.

As noted above, the forecast provided something of a letdown, with first-quarter revenue expected to be between $612 and $616 million, which isn't quite as high as the Street's forecast of $617.44 million. However, this didn't matter to investors and it also didn't affect Wedbush's Daniel Ives, a 5-star analyst ranked in the top 4% of stock professionals on the Street.

The analyst compares Palantir to companies like Nvidia, Microsoft and Palo Alto Networks, in terms of being a company for which the Street initially did not appreciate the opportunity.

“A few times every decade, there are technology companies that outperform the competition and are in a great position for future growth…and yet the Street at that time dismisses them by dusting off their stubborn, long-standing thesis about bears and 30,” the 5-star analyst said. “Spreadsheets.” “Palantir has gone from an off-Broadway play to a prime-time Broadway stage right off Times Square under the bright lights. “With US business growing 70% in the fourth quarter (up from the mid-20s a few quarters ago) and the number of commercial clients increasing 44% as the AI ​​revolution drives AIP deal flow to a level we don’t expect to reach until 2025.”

Calling Palantir an “undiscovered gem,” Ives raised his price target from $25 to a new Street high of $30, suggesting the stock has room for further growth at 25% from current levels. Needless to add, Ives' rating remains an Outperform (i.e. Buy). (To watch Ives' record, click here)

Overall, Ives' view is not very popular on Wall Street. With only 2 additional purchases for. 5 Holds and Sells, for each The analyst consensus rates the stock as a Hold. Most of them seem to think the stock is over the limit. The $18.20 average factors in to a 24% downside target for next year. (be seen Palantir stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.