Palantir Rockets On Strong Q4: '2024 Was Only A Dress Rehearsal' For AI Growth, Says Analyst

Shares of Palantir Technologies Inc PLTR climbed in early trading on Tuesday, after the company reported strong fourth-quarter results.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

Morgan Stanley On Palantir Technologies

Analyst Sanjit Singh upgraded the rating from Underweight to Equal-Weight, while raising the price target from $60 to $95.

Palantir Technologies' revenue growth accelerated for the sixth quarter in a row, from 30% in the third quarter to 36% in the fourth quarter, Singh said in the upgrade note. "For Q1 and FY25 revenue growth, management forecasts growth of +35-36% and +31%, respectively, which is well ahead of consensus looking for mid-20% growth," he added.

Palantir Technologies is executing well in the early stage of the AI cycle, "given a strong technology platform and elite engineering talent," the analyst wrote. The company's fundamentals are improving, as is the likelihood that this is sustainable, he further stated.

Northland Capital Partners On Palantir Technologies

Analyst Michael Latimore reaffirmed a Market Perform rating, while revising the price target to $80.

Palantir Technologies' revenue growth accelerated to 36% and operating margins expanded to 45% in the fourth quarter, Latimore said in a note. Revenues of $827.5 million surpassed consensus of $781.2 million, while EPS of 14 cents per share beat expectations of 11 cents per share, he added.

Management guided to first-quarter revenue of $858-$862 million, higher than consensus $799.4 million and non-GAAP operating income of $354-$358 million, above consensus of $298.1 million, the analyst stated. "Palantir stated that DeepSeek, and its low-cost powerful LLM, is making obvious what Palantir has stated all along, that the LLMs will commoditize as they get more similar over time," he further wrote.

Check out other analyst stock ratings.

BofA Securities On Palantir Technologies

Analyst Mariana Perez Mora reiterated a Buy rating, while lifting the price target from $90 to $125.

Palantir Technologies reported its full year results significantly ahead of expectations, reflecting that "2024 was only a dress rehearsal," Mora said in a note. "The company sees the world ripe for an AI and technology revolution," she added.

The analyst expects the company to lead the AI revolution in both the Commercial and Defense markets. "With the AI market becoming more crowded with more commoditized solutions; we think Palantir’s value proposition is only becoming more pronounced," she further wrote.

Cantor Fitzgerald On Palantir Technologies

Analyst Thomas Blakey maintained a Neutral rating, while raising the price target from $72 to $98.

Palantir Technologies reported a strong quarterly beat and raised its guidance, Blakey said. U.S. revenues grew 52% year-on-year, with U.S. Commercial revenues up 64% and U.S. government revenues growing 45%, he added.

The company's customer count rose by an impressive 43% year-on-year to 711, "which we attribute to momentum in the US as well as Palantir's AIP (Artificial Intelligence Platform), improving ability to create AI apps and agents in low code on its platform," the analyst wrote. Palantir Technologies is still in the early stages of its "journey of transforming industries and governments with its enterprise software and services offering," he further stated.

PLTR Price Action: Shares of Palantir Technologies had risen by 26% to $105.71 at the time of publication on Tuesday.

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