Mixed Reactions From 3 Palantir Analysts To Q3 Print: Is The Stock Set To Bounce Or Drop To $5?

Palantir Technologies Inc PLTR on Monday reported third-quarter results and reaffirmed full-year guidance.

RBC Capital Markets On Palantir Technologies

Analyst Rishi Jaluria reiterated an Underperform rating, while reducing the price target from $6 to $5.

The company reported “lackluster Q3 results, if not weak, given Commercial softness and FY guidance was maintained (despite the significant cut in Q2),” Jaluria wrote in a note.

“Commercial decelerated to just 13% ex-SPAC deals (17% as reported) from mid-20s over the past six quarters against an easier compare,” the analyst said. “In our view, this signals our concerns on the sustainability of Commercial are starting to play out,” he added.

Also Read: Tesla Investors To Brace For Recall Of 40,000 Model 3, X EVs While Stock Already Under Pressure

Morgan Stanley On Palantir Technologies

Analyst Keith Weiss maintained an Equal-Weight rating, with a price target of $10.

“Commercial business where investors looked for strength this quarter given increased sales investment and ramping productivity, slowed to 17% YoY growth from 46% YoY last quarter (13% YoY growth from 27% YoY ex-strategic investments) and was down sequentially, as macroeconomic uncertainty and a strengthening US dollar materialized in a weaker international commercial business result with flat YoY growth in the segment,” Weiss said in a note.

“A slowdown in the commercial segment due to weakness in international overhangs the stock near-term and will drive debate around the conservatism embedded in forward estimates, particularly looking into FY23,” he added.

Check out other analyst stock ratings.

Raymond James On Palantir Technologies

Analyst Brian Gesuale reaffirmed a Strong Buy rating, while lowering the price target from $20 to $15.

The company’s results were “solid” but were “greeted coldly,” Gesuale said. "Demand metrics such as revenue was slightly better than modeled, government reaccelerated from low teens to mid 20s% growth, and broad-based, new customer adds with significant contract value we’re accumulated," he added.

“The quarter felt relatively clean given the macro backdrop with the biggest negative model variance being international commercial demand uncertainty and well telegraphed currency headwinds,” the analyst further mentioned.

PLTR Price Action: Shares of Palantir Technologies had up 0.64% to $7.06 at the time of publication on Tuesday.

Meanwhile, Benzinga data shows analysts have a Neutral consensus rating on PLTR.

Photo: Courtesy of shutterstock.com