Gold prices steady near $3,400/oz as Sept rate cut bets rise; econ. data awaited
Investing.com -- Wedbush has lifted its price target on Palantir Technologies (NASDAQ:PLTR) from $160 to a Street high of $200 per share in a note Tuesday, citing surging demand for its artificial intelligence (AI) platform.
“This was another eye-popping quarter for the Messi of AI,” Wedbush analysts wrote, maintaining an Outperform rating on the stock.
Palantir posted total revenue of $1.004 billion in the second quarter, beating the Street’s $937.7 million estimate and marking its first $1 billion quarter.
U.S. commercial revenue was the highlight, rising 93% year over year and 20% sequentially.
Wedbush noted that this segment now accounts for more than 30% of total revenue, with “more enterprises looking to PLTR for complex AI use cases.”
The firm highlighted customer expansion, with Palantir’s top 20 customers now averaging $75 million in trailing 12-month revenue, a 30% year-over-year increase.
Total (EPA:TTEF) contract value in U.S. commercial climbed 222% to $843 million, while the company closed $2.79 billion in deals, up 141% from a year ago.
Wedbush also pointed to strong government momentum, as U.S. government revenue rose 53% year over year to $553 million, above the consensus estimate of $512.6 million.
Profitability metrics also exceeded expectations. Income from operations reached $464.4 million, reflecting a margin of 46.3%. Free cash flow came in at $568.8 million, topping the Street’s $329.6 million estimate.
Palantir guided full-year revenue between $4.142 billion and $4.150 billion, with U.S. commercial expected to grow 85%+. Wedbush concluded, “We believe Palantir has a golden path to become the next Oracle (NYSE:ORCL) over the coming years and will grow into its valuation.”