Mizuho analyst Matt Broome has raised his price target for shares of Palantir Technologies Inc. (PLTR) from $8 to $14 on Monday. Despite maintaining a neutral rating, Broome acknowledged the stock’s significant growth since Palantir’s last earnings report. During that report, the management expressed their commitment to aggressively pursue the AI opportunity and highlighted the strong demand from existing customers.
Palantir’s Strong Position in Managing Secure AI Deployments
Broome believes that Palantir is well-positioned to effectively manage secure AI deployments for its customers. However, it is still too early to fully comprehend the implications for their business model. Broome’s revenue forecast for the latest quarter slightly exceeds the consensus view, while his earnings expectations align with the market consensus.
The Complexity of Assessing Palantir’s Business
Conducting channel checks and assessing the state of Palantir’s business poses a particular challenge due to the company’s direct engagement with a relatively small commercial customer base. Additionally, military contracts are naturally shrouded in secrecy, making it even more difficult to gather information about this aspect of their operations.
