This article first appeared on GuruFocus.
Palantir Technologies (NASDAQ:PLTR) shares rose 5% Monday after Oppenheimer reaffirmed its Outperform ranking and maintained a $200 value goal forward of the corporate’s second-quarter earnings report.
Oppenheimer mentioned Palantir could exceed second-quarter income expectations and lift its full-year outlook, supported by continued demand for its synthetic intelligence software program from each U.S. authorities businesses and business prospects. The agency’s value goal implies notable upside from the inventory’s latest closing value.
Palantir is scheduled to report second-quarter outcomes on Aug. 3. The firm entered the second half of the 12 months after posting document first-quarter income of $1.63 billion, up 85% from a 12 months earlier. U.S. business income elevated 133% to $595 million, whereas U.S. authorities income rose 84%. Management additionally lifted its full-year income outlook to $7.65 billion to $7.66 billion.
Despite the sturdy working efficiency, Palantir has confronted valuation considerations as a result of it trades at premium earnings and gross sales multiples in contrast with many software program friends. Analysts proceed to look at whether or not the corporate’s increasing AI enterprise can assist its elevated valuation over time.
