Thanks to a very strong second quarter (Q2) earnings report, Palantir (NYSE: PLTR) stock stood in stark contrast against most of the market in the extended session between August 5 and 6.
Palantir reported Q2 adjusted earnings of $0.09 per share on revenue of $678.1 million, exceeding analysts’ estimates of $0.08 per share on revenue of $653.2 million. The strong results beat expectations, thanks to a bunch of new business wins, including 27 deals worth over $10 million each, which boosted their customer count by 41% compared to last year in Q2.
Additionally, the company expects Q3 revenue to be between $697 million and $701 million, topping Wall Street’s estimate of $680.7 million.
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Indeed, having reported strong revenue and earnings growth and having beaten analyst predictions, PLTR shares have risen in the extended session to be 10.21% in the green at press time, with a price of $26.55.
Furthermore, not only did Palantir beat expectations and surge up on increased artificial intelligence (AI) demand, but strong guidance for the upcoming quarters bolstered the bull case for the technology company.
Wedbush highly bullish on Palantir stock
Given the reported figures, it comes as no surprise that multiple prominent analysts have reacted positively to the earnings with, for example, Wedbush’s Dan Ives upgrading the 12-month PLTR price target from $35 to $38 and explaining the firm’s bull case would see the shares climb as high as $50.
Palantir faces mixed responses to its Q2 earnings report
Still, not all reactions have been as bullish as, for example, experts with DA Davidson reiterated their ‘neutral’ rating despite boosting the price target from $24 to $28, while Deutsche Bank stuck to their ‘sell’ rating. Deutsche did raise the stock price forecast from $20 to $21 for Palantir, though.
Mizuho’s reaction was quite similar as the company reiterated its ‘sell’ rating for PLTR stock but bumped the price target from $22 to $24.
“While the 2Q results are encouraging, we continue to believe PLTR needs to consistently demonstrate stronger execution and growth in order to justify a notably higher valuation,” Mizuho analysts noted. “Given the inherent lumpiness of this business, we believe that will likely be challenging.”
Finally, Citi (NYSE: C) simply maintained its ‘neutral’ stance and the associated $28 stock market forecast.
Overall, the mixed reactions fall in line with the broader outlook for Palantir seen in recent months. Indeed, if the most recent reactions are disregarded, PLTR is considered a ‘hold’ with 3 ‘buy,’ 5 ‘neutral,’ and 6 ‘sell’ ratings on the stock analysis platform TipRanks.
Additionally, prior to the earnings report, PLTR shares were expected to drop nearly 7% to $22.42. Finally, both before and after its latest revisions, Wedbush boasted the street-high 12-month forecast for Palantir, first with $35 and, at press time, with $38.
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