Analyst Note| Malik Ahmed Khan |
We are maintaining our $9 fair value estimate for Palantir after the firm reported a strong quarter, including strong top-line growth, robust billings, and GAAP profitability. We continue to have a positive outlook on Palantir’s set of government/commercial solutions and envision an improved business environment as macro pressures dissipate over time. We believe a renewed interest in artificial intelligence also bodes well for Palantir’s solutions, which have long leveraged AI to deliver business outcomes for clients. With shares up more than 20% after hours, we believe the market has calibrated its valuation to reflect Palantir’s strong fundamentals that we have previously highlighted, and we view the firm’s shares as fairly valued.