Palantir Rallies Off AI-Driven Q4 Earnings: Bull Analyst Sees 'Off The Charts Commercial Success'

Shares of Palantir Technologies Inc PLTR were climbing Tuesday after the company reported better-than-expected fourth-quarter results.

Here's what four analysts are saying about the earnings report. 

Wedbush On Palantir Technologies

Analyst Daniel Ives maintained an Outperform rating while raising the price target from $25 to $30.

Palantir Technologies is experiencing “off the charts commercial success,” with rising demand for its artificial intelligence platform, Ives said in a note.

“With a US commercial business that grew an eye popping 70% in 4Q (up from mid 20% a few quarters ago) and commercial customer count that grew 44% as the AI Revolution is driving AIP deal flow to a level we did not expect until 2025,” he added.

Mizuho Securities On Palantir Technologies

Analyst Matthew Broome reiterated a Neutral rating while lifting the price target from $16 to $18.

Palantir Technologies reported “generally good” fourth-quarter results, “with signs of growing AI momentum,” Broome said.

The company posted a modest upside in revenue, “driven by very strong US Commercial growth of 70% Y/Y, with generative AI a significant catalyst,” the analyst wrote. The government business continued to be a drag, while commercial customers in Europe do not seem to be engaging in AI, he said. 

Check out other analyst stock ratings.

RBC Capital Markets On Palantir Technologies

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

While the U.S. commercial growth and profitability results and guidance outperformed the consensus estimates, the overall fourth-quarter revenue upside was limited and the 2024 revenue guidance “seems imprudent to us,” Jaluria said.

“All in all, while we acknowledge that Commercial exceeded expectations and offset Government weakness, we find it difficult to reconcile our concerns about the business model and sustainability of growth with shares trading at a premium multiple,” he added.

William Blair On Palantir Technologies

Analyst Louie DiPalma reiterated an Underperform rating on the stock.

Shares rallied as investors remained excited about the strong U.S. commercial revenue growth and margin expansion, DiPalma said. The 2023 revenue was within the guidance range originally provided a year ago, he said. 

“The issue here is that U.S. commercial revenue is less than 20% of total revenue and the other divisions continue to struggle,” the analyst said. 

PLTR Price Action: Shares of Palantir Technologies had risen by 24.88% to $20.88 late Tuesday morning. 

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