Loop Capital Raises Palantir Price Target to $130

Loop Capital analyst Mark Schappel raised the price target on Palantir Technologies Inc.

(NASDAQ: PLTR) to $130 (from $125) while maintaining a Buy rating.

“PLTR lived up to its lofty expectations in the March quarter with revenue growth accelerating 39% to $884M, ahead of our estimate by $21M, US commercial growth was 71%, net revenue retention ticked up to 124%, and operating margins were 44%, topping our estimate by 260 bps.

Revenue guidance increased $147M, and qualitative commentary around the pipeline and activity remains equally upbeat, and if the leading indicators are to be believed (45% billings growth and 30% cRPO growth), we expect the steady execution to continue.

The stock was down a few points in the aftermarket, which isn’t totally surprising given how PLTR traded into the print.

In terms of the stock, you can gripe about valuation, and that’s legitimate, but it’s difficult to find fault with the fundamentals.

Bottom line, the market for enterprise AI is enormous, is at a tipping point as small-scale pilot programs move into production and AI use cases grow exponentially across all industries, and we believe PLTR is uniquely positioned as one of the category leaders in the space.

We continue to believe growth investors should have some exposure here, and we’d be looking to pullbacks to fill out positions. PLTR remains a Buy, and we are bumping up our price target to $130.”

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