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PLTR Stock Forecast: Where Will Palantir Go Next After Earnings Disappointment?

Palantir (NYSE:PLTR) is not having a good day. Indeed, shares of PLTR stock are down over 10% today after the company reported Q4 earnings. Revenue came in at $433 million, up 34% year-over-year (YOY), which was above analysts’ estimate…

Palantir (NYSE:PLTR) is not having a good day. Indeed, shares of PLTR stock are down over 10% today after the company reported Q4 earnings. Revenue came in at $433 million, up 34% year-over-year (YOY), which was above analysts’ estimates of $418 million. In addition, commercial revenue grew 47% YOY, while government revenue grew 26% YOY. However, earnings per share (EPS) missed expectations of 4 cents, coming in at 2 cents. Palantir’s EPS miss may be a result of its special purpose acquisition company (SPAC) investments, which saw a decline in value during Q4. COO Shyam Sankar said that the company has slowed down SPAC purchases because the “SPAC market has gone quiet.”

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During Q4, the data analytics company added 34 new customers and closed 64 deals worth $1 million or more. Out of those 64 deals, 27 deals were worth $5 million or more, while 19 deals were worth $10 million or more.

For guidance, Palantir expects Q1 revenue of $443 million, which was above analysts’ estimates of $439 million by less than a percent. Furthermore, the company confirmed its guidance of 30% annual revenue growth through 2025. However, Palantir remains unprofitable. It reported a net loss of 156.19 million, which was more than its net loss of $148.34 million a year ago.

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With the recent earnings report in mind, investors are wondering how PLTR stock will fare for the rest of the year. Let’s jump right in.

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Where Will PLTR Stock Head After Reporting Q4 Results?

  • Credit Suisse has a price target of $25. Analyst Phil Winslow believes that the company can unlock “significant value” by expanding its Foundry business to commercial businesses with large enterprises. Furthermore, Winslow notes that investors would like to see more evidence of the “evolution of Palantir’s go-to-market model to acquire new commercial clients.”
  • Jefferies has a price target of $21. Analyst Brent Thill believes that Palantir’s next leg of growth will be driven by “further acceleration from the commercial business.” Thill also adds that PLTR stock trades at a discount to large-cap software names when utilizing expected 2023 revenue figures.
  • Citi has a price target of $13. Analyst Tyler Radke reiterated his sell rating and price target after reviewing Q4 results. In his view, the results were “underwhelming” and demonstrated “a continued profile of slowing growth.” The analyst also adds that YOY comparisons will be difficult, given the Covid boost on the number of contracts signed.
  • Finally, Palantir has an average price target of $20.17 among nine firms with coverage of the stock.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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