Palantir Stock: Analysts Weigh In Ahead of Earnings Report

Palantir Stock: Analysts Weigh In Ahead of Earnings Report

Palantir Technologies (PLTR) is set to report its fourth-quarter results after the market closes on Monday, and analysts are eagerly awaiting the announcement. While Palantir’s stock has experienced significant growth over the past 12 months, nearly quintupling in value, analysts are largely skeptical about whether the analytics software provider’s stock can sustain its recent momentum.

Analysts’ Expectations

Analysts expect Palantir to report revenue of nearly $775 million for the fourth quarter, representing a 27% year-over-year increase. Adjusted earnings are expected to rise 35% to $273.79 million, or 11 cents per share. However, earnings per share are expected to decline to 3 cents per share from 4 cents per share a year earlier.

Wedbush Analysts’ Bullish Outlook

Wedbush analysts are more optimistic about Palantir’s prospects, recently raising their price target to $90 from $75. They believe that Palantir “has a path to become the next Oracle or Salesforce over the coming years” and that Wall Street is underestimating the revenue potential of Palantir’s Artificial Intelligence Platform.

Jefferies’ Underperform Rating

In contrast, Jefferies maintained an “underperform” rating and price target of $28, citing concerns that the stock is trading at a high premium. They warned that “any signs of decelerating growth could cause concern” and that the stock’s valuation is “stretched.”

Consensus Price Target

The consensus price target among analysts tracked by Visible Alpha is $50, which is nearly 40% below Palantir’s record-high close at $82.49 on Friday. This suggests that analysts are cautious about Palantir’s ability to sustain its recent growth momentum.

Palantir’s Growth Prospects

Palantir’s Artificial Intelligence Platform has been a key driver of the company’s growth, and analysts are closely watching the platform’s revenue potential. Wedbush analysts believe that the platform has significant growth prospects, while Jefferies is more cautious, citing concerns about the stock’s valuation.

Key Takeaways

1. Palantir’s earnings report: The company is set to report its fourth-quarter results after the market closes on Monday.
2. Analysts’ expectations: Revenue is expected to increase 27% year-over-year, while adjusted earnings are expected to rise 35%.
3. Wedbush’s bullish outlook: Analysts believe that Palantir has a path to become the next Oracle or Salesforce.
4. Jefferies’ underperform rating: The firm maintained an “underperform” rating, citing concerns about the stock’s valuation.
5. Consensus price target: The consensus price target among analysts is $50, which is nearly 40% below Palantir’s record-high close.

As Palantir prepares to report its fourth-quarter results, analysts are closely watching the company’s growth prospects and valuation. While some analysts are optimistic about Palantir’s potential, others are more cautious, citing concerns about the stock’s valuation and growth prospects.

EXCERPT

What Analysts Think of Palantir Stock Ahead of Earnings
By Andrew Kessel

Key Takeaways

Palantir Technologies is set to report fourth-quarter results after the market closes Monday, with analysts expecting revenue and adjusted earnings growth.
However, analysts are largely skeptical on whether the analytics software provider’s stock can sustain its recent momentum.
Shares of Palantir have nearly quintupled in value over the past 12 months.

Palantir Technologies (PLTR) is set to report fourth-quarter results after the market closes Monday, with analysts largely skeptical on whether the analytics software provider’s stock can sustain its recent momentum.1

None of the 13 analysts covering the stock tracked by Visible Alpha expect the stock has further to rise, with their consensus price target of $50 almost 40% below the stock’s record-high close at $82.49 Friday amid some concerns it could be overvalued.

Shares of Palantir rose 1.6% Friday, and have nearly quintupled in value over the past 12 months as demand surged for the company’s Artificial Intelligence Platform.2

Wedbush analysts, who are more bullish on the stock than those polled by Visible Alpha, recently raised their price target to $90 from $75, and said they believe Palantir “has a path to become the next Oracle or Salesforce over the coming years,” adding they believe Wall Street is underestimating the revenue potential of Palantir’s Artificial Intelligence Platform.3

However, others like Jefferies, which on Thursday maintained an “underperform” rating and price target of $28, have suggested the stock is trading at such a high premium that “any signs of decelerating growth could cause concern.”4

Palantir is expected to report fourth-quarter revenue of nearly $775 million, up 27% year-over-year, and earnings of $83.51 million, or 3 cents per share, down from $96.91 million, or 4 cents per share, a year earlier. However, earnings after adjustment are expected to rise 35% to $273.79 million, or 11 cents per share. Wedbush projected Palantir could face a one-time impact to the tune of $120 million in stock-based compensation expenses.

In the third quarter, Palantir had reported better-than-expected results and raised its revenue guidance for the last quarter of the year.