Software and data analytics company Palantir Technologies (NYSE: PLTR) released its first quarter financial results after the market closes on Monday.
Analysts evaluate the first quarter results and what’s next for the company.
Palantir analysts: Goldman Sachs analyst Gabriela Borges has a neutral rating and raised the price target to $14 from $13.
Mizuho analyst Gregg Moskowitz has a neutral rating and a $21 price target.
Related link: Palantir Stock Falls Tuesday: What’s Happening?
Goldman Sachs on Palantir: The company’s interactive Bootcamp workshop may be in the early stages of conversion, according to Borges.
“We believe investors will focus on the sustainability of U.S. business growth to ensure Palantir can maintain or accelerate total revenue growth of over 20% over the medium term,” Borges said.
The analyst said Palantir beat analysts’ revenue estimates and increased its full-year revenue and operating profit forecasts.
“We continue to view Palantir as uniquely positioned to leverage its core data assembly skills to companies looking to deploy AI use cases. »
The analyst said more than 915 organizations have participated in AI boot camps to date, with 136 deals concluded in the first quarter.
“We are looking to evaluate how well Palantir can consistently convert bootcamps into bookings and revenue, as we believe this go-to-market is still in the early stages of being formalized.”
Mizuho on Palantir: The company’s artificial intelligence platform has shown encouraging signs, Moskowitz said.
The analyst said the first quarter financial report was strong, with “good revenue upside potential.”
“The government rebound was a pleasant surprise, even if the commercial rebound from just strategic business contracts was not,” Moskowitz said.
The analyst said the strong report and higher guidance “could help ease concerns among potential investors.”
“We believe PLTR must consistently demonstrate stronger execution and growth in order to justify a higher valuation.”
The analyst said Palantir was showing strong momentum for its AI platform, with strong demand coming from U.S. companies.
“Mgmt also reiterated that it is seeing exceptional interest in its AIP bootcamps, which help PLTR significantly compress sales cycles as new customers come on board and grow at an accelerated pace. »
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. Moskowitz said that the premium multiple compared to other enterprise software companies is based on “Palantir’s strong strategic positioning with large customers and the potential for accelerated growth in the years to come.”
PLTR Price Action: Palantir shares are down 14% at $21.65 on Tuesday, compared with a 52-week trading range of $8.66 to $27.50. Palantir shares are up 180% over…
