Palantir Technologies received a new Buy recommendation from Goldman Sachs on Wednesday and a price target of 34 USD

While the big data analytics company’s stock fell on Tuesday after a surprising loss in earnings, Goldman analysts were pleased with the quarterly results, saying the company now has a path to “sustainable growth”

The analysts, led by Christopher D According to Merwin, CFA, Palantir had “strong fourth quarter results,” which increased revenue and EBITDA expectations by 6% and 6% respectively 115% exceeded

“We were encouraged to produce a guide to management to $ 4 billion in sales USD to see in FY25, which implies a 5-year CAGR of 30% from FY20, “Merwin said.” With a growing backlog of $ 2, we believe the deal is worth $ 8 billion (31% YoY) increased the visibility of the achievability of this long-term goal “

Government revenues were another bright spot for Palantir in its latest earnings report, which rose 85% year over year to $ 190 million The company signed 21 contracts with contractors valued at over $ 5 million in the quarter, compared to just 15 a year ago
Goldman analysts also expect the margin expansion to continue 63 points in the quarter, leading the group to model non-GAAP EBIT of 23% after 17%

Additionally, Goldman said Palantir’s deal with IBM “should help grow the current relatively small number of commercial customers”

Quarterly results from Palantir were enough for Goldman to more than double its target price from $ 13 per share to $ 34, Merwin and his team said the company should now be “more in line with 30% growth deals starting at 44x CY21- Sales are traded “

Goldman’s price target implies a potential return of 22% from Tuesday’s closing price. Perhaps this is why Cathie Wood’s ARK Next Generation Internet ETF bought 1.56 million shares on Tuesday after its price decline

Palantir’s stock is up nearly 200% in a bull market for stocks over the past six months, but the company has seen its shares decline from all-time highs of over $ 39 per share on Jan. January 27

Palantir Stock, Palantir

World News – CA – Palantir has moved Goldman Sachs to “buy” with new price target of $ 34 after recent earnings show “sustainable growth” had recorded

Source: https://www.businessinsider.com/palantir-stock-price-goldman-sachs-q4-earnings-analysis-2021-2