Monday, July 15, 2024

Palantir is the Lionel Messi of AI, Wedbush says

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Palantir Technologies

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Palantir Technologies (NYSE:PLTR) is the Lionel Messi of artificial intelligence, investment firm Wedbush Securities said, making a veiled reference to the Argentinian soccer superstar.

“The company remains well-positioned to capitalize on strong commercial and government spending tailwinds heading into year-end/2024,” Wedbush analysts, led by Dan Ives, wrote in their research. “PLTR will garner an impactful share of this Global AI opportunity as enterprises and governments seek to improve efficiencies while automating complex workflows.”

Palantir (PLTR) shares rose more than 4% on Friday, adding on to Thursday’s 20% surge after it reported strong third-quarter results and raised its guidance.

The Denver, Colorado-based company is seeing heightened demand for its product portfolio across government and commercial sectors with 34% growth in customer count, Wedbush explained.

“The company has shown its ability to accelerate larger deals with shorter conversion times as enterprises and governments discover how to derive value following the deployment of AI,” the analysts added. Wedbush maintained its Outperform rating on the stock with a $25 price target.

Palantir (PLTR) posted its fourth consecutive GAAP positive quarter with continued focus on R&D investments given its strong cash position with free cash flow came in at $140.8M, better than Wall Street’s expectations of $113.4M, as solid cost management buoyed the figure.

Total revenue came in at $558.2M, above the company’s guidance range as its artificial intelligence platform continues gaining momentum by signing new logos while expanding partnerships with existing customers.

Palantir also raised its fiscal 2023 revenue and operating income guidance, and now expects sales to be between $2.216B and $2.22B, above the $2.21B consensus estimate.

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