4 Analyst Takeaways From Palantir Technologies' Quarterly Results — Ranging From $5 To $15 PTs

Shares of Palantir Technologies Inc PLTR spiked in early trading on Monday, after the company reported its fourth-quarter results.

Morgan Stanley on Palantir Technologies

Analyst Keith Weiss maintained an Equal-Weight rating and price target of $8.

“Palantir again delivered a slight top-line beat with total revenues growing 18% YoY to $509 million, beating consensus by ~1%, led by better than expected US Government growth, offset by slowing US Commercial growth and continued weakness in European business,” Weiss said in a note.

“However, with revenue growth rates decelerating in Q4 (and expected to fall further in FY23) and non-GAAP operating margins still down 620 bps YoY, we still find the valuation paradigm difficult to underwrite,” he added.

Raymond James on Palantir Technologies

Analyst Brian Gesuale reiterated a Strong Buy rating and price target of $15.

“As global geopolitical tensions persist and macro uncertainty remains, we believe companies, like PLTR that are indexed (56% of sales) to non-cyclical government budgets sit on an advantageous perch that drives more stability in its results,” Gesuale wrote in a note.

“We see past contract performance, technical capabilities, and culture aligned with western governments as uniquely positioned to grow their government business from $1 to $2 B in ~3 years irrespective of macro conditions,” he added.

Check out other analyst stock ratings.

RBC Capital Markets on Palantir Technologies

Analyst Rishi Jaluria reaffirmed an Underperform rating and price target of $5.

“Palantir reported weak top line Q4 results and CY23 guidance, though not de-risked (assumes accelerating growth), somewhat offset by better than expected profits,” Jaluria said.

“All leading indicators (total deal value, billings, RPO) appeared underwhelming to us,” the analyst wrote. “Despite headwinds from fading SPAC revenue, Palantir established another seemingly overly ambitious target of 40% US Commercial growth in CY23,” he added.

Goldman Sachs on Palantir Technologies

Analyst Gabriela Borges maintained a Neutral rating and price target of $8.

Profitability in the fourth quarter was “largely driven by a one-time item ($44 mn gain from acquiring the Palantir Japan JV), while billings of $387 mn were flat yoy and 1Q revenue was guided 3% below the Street,” Borges said.

“The healthcare end market continues to be a bright spot, and Palantir now works with 4 large organizations that represent nearly 10% of the entire US hospital system, including Cleveland Clinic and Tampa General,” he added.

PLTR Price Action: Shares of Palantir Technologies had risen by 13.67% to $8.65 at the time of publication Monday.

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