Proactive Investors - Palantir Technologies Inc (NYSE:PLTR) shares fell more than 14% post-earnings on Tuesday, which analysts at Wedbush believe is a “golden buying opportunity for this pure play AI name.”
The data analytics firm posted a first quarter earnings beat but investors pulled back on the stock due to weaker-than-hoped guidance.
The Wedbush analysts wrote that Palantir delivered “another Jalen Bruson-like performance,” referring to the basketball player for the New York Knicks, during the first quarter driven by the adoption of its Artificial Intelligence Platform (AIP) across both the commercial and government sectors.
“We are laser-focused on the AI story playing out with AIP leading the way and Palantir delivered robust numbers on this front yet again,” they wrote.
“US commercial revenue continues seeing strength growing 40% year-over-year to $150 million while seeing its US commercial customer count increase 69% year-over-year and closing 136 US commercial deals (up 94% year-over-year) as more enterprises see the value AIP provides with optimizing efficiencies and producing stronger results.”
They also highlighted that Palantir increased its full-year 2023 revenue and operating income guidance as it continues to capture market share with AIP across both commercial and government, but noted that some bulls had been hoping for an even bigger raise.
The analysts awarded Palantir an ‘Outperform’ rating and a $35 price target.
“We continue to see increased momentum in the Palantir growth story with AIP leading the charge in generating significant demand across both commercial and government landscapes while well-positioned to gain a larger share of this $1 trillion opportunity taking place with AI use cases exploding globally,” they wrote.
Palantir shares traded down 14.2% at about $22 on Tuesday afternoon.