Palantir's Q3 Beat-And-Raise 'Another Stepping Stone Placed On The Golden Path' For The Company, Says Analyst

Palantir Technologies, Inc. PLTR shares traded flat in premarket trading Friday after a 20%+ rally in the previous session on the back of a third-quarter beat. Following the quarterly outperformance, a bullish analyst reiterated his bullish stance on the company.

The Palantir Analyst: Wedbush analyst Daniel Ives maintained an Outperform rating and $25 price target for Palantir stock.

The Palantir Thesis: Palantir is witnessing heightened demand for its product portfolio across government and commercial sectors, which manifested in the third quarter double beat and guidance raise, said Ives in a note. He noted that customer count increased 34% year-over-year and 8% sequentially, partly aided by the company conducting AIP, its in-house artificial intelligence platform, and boot camps for over 140 companies.

“AIP continues gaining momentum by signing new logos while expanding partnerships with existing customers,” Ives said. Citing Palantir, the analyst said there has been heightened demand for the company’s full product suite, given the current geopolitical backdrop.

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The 23% year-over-year revenue growth in the commercial customer sector to $251 million was due to the increased adoption by new customers and the expansion of existing opportunities within AIP, as well as a faster go-to-market motion.

Ives also noted that Palantir posted its fourth consecutive GAAP positive quarter with continued focus
on R&D investments, given its strong cash position and free cash flow.

“With another stepping stone placed on the golden path for PLTR, the company remains well-positioned to capitalize on strong commercial and government spending tailwinds heading into year-end/2024,” Ives said.

“We continue to believe PLTR will garner an impactful share of this Global AI opportunity as enterprises and governments seek to improve efficiencies while automating complex workflows,” he added.

Image Credits – Shutterstock

Palantir Stock: In premarket trading on Friday, the stock traded flat at $17.96, according to Benzinga Pro data.

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