William Blair Reiterates Outperform on Palantir
William Blair analyst Louie DiPalma reiterated an Outperform rating on Palantir (NASDAQ: PLTR).
“Palantir shares are up more than 12% after-market after reporting that its U.S. commercial revenue growth accelerated to 149% in the second quarter from 133% last quarter and its U.S. commercial bookings growth accelerated to 153% from 45% last quarter.
The stellar performance defies concerns that competition with Anthropic and OpenAI is intensifying for enterprise AI workflows.
Palantir topped last quarter’s astounding Rule-of-145 score with a June-quarter Rule-of-155 score comprising 93% growth and an adjusted operating margin of 62%.
There is no public software company or defense contractor with this combination of revenue growth and profitability. U.S. government revenue growth accelerated to 90%.
The Defense Department is seemingly deploying Palantir software across all strategic software programs, including the Golden Dome, FAA Modernization, Navy ShipOS operating system, Vantage, TITAN, Kobayashi Maru, and Maven Smart System.
In the context of the valuation for other AI ecosystem winners, Palantir’s valuation seems reasonable, and we see upside to shares to the $200 range over the next year.”
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