Artificial intelligence (AI) software company Palantir (NASDAQ:PLTR) stock drew a higher price target after reporting results that beat street estimates.
Palantir earned $134 million, 6 cents per share, on revenue of $678 million during the quarter ending in June. Revenue was up 27% year-over-year. The company guided to full-year revenue of about $2.75 billion.
The news sent PLTR stock up over 10% in pre-market trading. It opened this morning at about $26.70 per share, its market capitalization over $60 billion.
New Bullish Forecasts
D.A. Davidson analyst Gil Luna was quick to raise his price target on the stock to $28 per share from $24. Bullish analysts see “unbridled demand” for its services.
While Palantir is mostly a military contractor, CEO Alex Karp said in his letter to shareholders that it is seeing strong growth in the commercial sector. It now has 295 commercial accounts, against just 101 a year ago. Commercial revenue in the second quarter was $159 million, but that’s still just one-quarter of the total. First-quarter commercial revenue was $150 million.
Karp’s letter also attacked enterprise software companies that focus on value rather than outcomes. “They attempted to seize the cultural and moral high ground at the expense of anything resembling a commitment to outcomes,” he wrote, and they’re being “swept to the side” by AI.
Wedbush analyst Dan Ives joined in the praise, calling Palantir “the Messi of AI,” a comparison with the Argentine soccer star. Barron’s analyst Jacob Sonenshine was crowing after having recommended it last week.
PLTR Stock: What Happens Next?
Not all analysts are enamored of Palantir at its current price level. Of 14 following it at Tipranks, 6 are telling clients to sell it. It could rise further on this resistance, as traders at Stocktwits are extremely bullish on it.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
