'Undiscovered Gem' Palantir To Report Solid Quarter, Says Analyst Ahead Of Q1 Results: 'On The Golden Path Of Its Monetization Story'

Palantir Technologies, Inc. PLTR is scheduled to release its quarterly results Monday after the market close and ahead of the report a bullish analyst maintained an Outperform rating and $35 price target for the share.

Analysts, on average, expect the company to report earnings per share of 8 cents per share on revenue of $625.33 million, according to Benzinga Pro data. This is up from the year-ago earnings of 5 cents per share and revenue of $525.19 million.

Bracing For Solid Quarter: Wedbush’s Daniel Ives said he expects another solid quarter, with upside likely coming from the U.S. commercial segment. “With the AI Revolution now quickly heading towards the key use case and deployment stage, Palantir with its flagship AIP platform and a myriad of customer boot camps is in the sweet spot to monetize a tidal wave of enterprise spend now quickly hitting the shores of the tech sector in our opinion,” the analyst said.

He noted that customers across industries are continuing to find use cases with AIP. This creates major cross-sell opportunities in the pipeline, he said. “Significantly” higher productivity with the deployment of the Palantir suite provides additional room for scaling, he added.

“Overall, we believe Palantir is on the golden path for its monetization story on the commercial side and is well-positioned to capitalize on the strong commercial spending tailwinds for 2024/2025,” Ives said.

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Poised For Market Share Gains: Ives expects Palantir to gain a meaningful share of an estimated $1 trillion global total addressable market for AI, given its strong product portfolio. The optimism is premised on enterprises and government ecosystems showing urgency to implement useful platforms for automating complex workflows, he said.

Palantir customers testified regarding “eye-popping” up-times, with complete and full integration happening between one and four weeks of signing papers, Ives noted.

The analyst estimates that the company’s U.S. commercial business will likely grow by at least 40% in 2024, and this massive pace of commercial business ramp-up will likely fetch free cash flow near $1 billion in 2024.

Palantir “remains an undiscovered gem and a core part of our thesis in the AI Revolution just now taking shape across the tech world,” Ives said. “We believe AI is a 1995 Moment and this spending wave along with the AIP foundation puts PLTR in prime position to monetize AI demand/use case build outs in 2024 and beyond.”

Investor Focus: AIP customer conversion, U.S. commercial strength momentum and the trajectory of larger deals in the pipeline are all areas investors may seek clarity, Ives said

The Palantir Stock: In premarket trading, Palantir stocks rose 3.64% to $24.18, according to Benzinga Pro data. The stock has gained about 8% year-to-date.

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