Citi Reiterates Neutral Rating on Palantir Technologies Inc. (PLTR), PT $42
Citi analyst Tyler Radke reiterated a Neutral rating and $42.00 price target on Palantir Technologies Inc. (NASDAQ: PLTR).
The analyst comments "We are updating our model to reflect incremental dilution following Stock Appreciate Rights (SARs) impact of approximately $120M in SBC. This incremental SBC decreases our GAAP EPS estimate for 4Q24 by $0.04. We expect slightly smaller beat cadence vs last Q due to weaker Govt seasonality, our Govt deal tracker, which declined ~60%, and US Commercial that is lapping a tough comp. These changes do not have material impact to our non-GAAP estimates, keeping our Target Price unchanged at $42. We believe that Palantir is well positioned to benefit from increased Enterprise and Government demand for data modernization and GenAI projects. The company’s revamped commercial business is helping accelerate new customer acquisition and improve U.S. commercial growth. That said, the company is still facing headwinds from SPAC investments/revenue agreements over the past few years, and Government revenue has been sluggish, which has led to more modest total growth rates."
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Shares of Palantir Technologies Inc. closed at $82.49 yesterday.