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Palantir (NYSE:PLTR) stock jumped 20% yesterday following the release of its third-quarter results, which were significantly boosted by strong demand for its artificial intelligence ( ) platform. In the wake of the results, multiple analysts are expressing optimism about PLTR stock, citing the extent to which the AI boom is helping the company.
Palantir’s Third-Quarter Results
Palantir’s Q3 results came in above the Street’s average estimates, and the company reported that strong demand for its AI platform was the key factor behind its success last quarter.
PLTR’s top line climbed 17% versus the same period a year earlier to $558 million and was slightly ahead of analysts’ average estimate. Its earnings per share, excluding certain items, came in at 7 cents, 1 cent above the mean estimate. PLTR generated cash from operations of $133 million.
Palantir CFO Dave Lazar attributed the firm’s profit to its “intense focus” on its Artificial Intelligence Platform () and strong demand for this product from U.S. companies.
“The potential market for AIP and the trajectory of possible AIP growth for our business is massive,” Chief Revenue Officer Ryan Taylor stated.
Multiple Analysts Are Bullish on PLTR Stock
Investment bank Jefferies is bullish on Palantir, as the firm thinks that the company’s fundamentals are strong, while AIP has competitive advantages and “can lead to durable growth and profitability in the medium to long-term.”
Also upbeat on PLTR stock in the wake of the results was Bank of America. which reiterated a “buy” rating on the shares.
Other Firms Are Not as Upbeat on PLTR
Wolfe Research raised its price target on PLTR to $11 from $8 but kept an “underperform” rating on the name.
Meanwhile, Goldman Sachs reported that it was impressed by the company’s monetization of AIP and the “reacceleration” of PLTR’s “U.S. commercial business.”
However, the firm believes that other stocks have “better risk/reward” ratios, and it indicated that it’s skeptical as to whether Palantir can continue to expand as quickly as it did in Q3.
Goldman kept a “neutral” rating on PLTR.
On the date of publication, Larry Ramer 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.