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Palantir Analysts Largely Positive on Earnings Report

Palantir has room for upside, driven by estimate revisions and multiple expansion, Jefferies said after the analytics-software maker's report.
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Palantir Technologies  (PLTR) - Get Palantir Technologies Inc. Class A Report analysts gave a largely positive reception to the data-analytics-software producer's third-quarter-earnings report, its first as a public company.

The Denver company, which focuses on the government and big companies, reported a net loss of 94 cents a share vs. a loss of 24 cents in the year-earlier quarter. Revenue of $289.4 million was up from $190.5 million.

A survey of analysts by FactSet produced consensus estimates for net income of 2 cents a share on revenue of $279.4 million.

For the fourth quarter ,the company is guiding for revenue of $299 million to $301 million, up 30% to 31% from the year-earlier $229 million. The FactSet survey for Q4 indicates analysts are looking for an average of $296 million.

Palantir shares recently traded at $15, up 2.9%. They rose 53% since it began trading Sept. 30 through Thursday.

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Jefferies analyst Brent Thill raised his share-price target to $18 from $13, affirming his buy rating. 

Despite the stock’s recent surge, it has “room for further upside, driven by a combination of estimated revisions and more incremental multiple expansion,” he wrote in a commentary cited by Bloomberg.

RBC Capital Markets analyst Alex Zukin lifted his share-price target to $15 from $11 and kept his sector-support rating. 

He cited “a strong quarter highlighted by a nine-figure customer contract renewal and a number of eight-figure deals across government and commercial sectors,” Bloomberg reported.

To be sure, Morgan Stanley analyst Keith Weiss cut his rating to equal weight from overweight, though he boosted his share-price target to $15 from $13, reflecting recent market activity.

Palantir showed “a solid first quarter out of the gate,” he said, according to Bloomberg. But Weiss is concerned about valuation.