It might not be as iconic as Comic Con, as colorful as Dragon Con, or as tasty as PizzaCon, but Palantir’s (NYSE:PLTR) AIPCon has made a big name for itself in a short period of time.
Last week, the big data specialist hosted its fifth AIPCon since its debut in June of last year. This event serves as the user conference for Palantir’s artificial intelligence platform (AIP), which has quickly gained traction and contributed to the rapid growth of Palantir’s enterprise revenue.
With 111 customers in attendance, Northland’s Michael Latimore, an analyst ranked in the top 3% of Street stock pros, was there to get the latest scoop.
A major theme at the event was Palantir’s increased emphasis on empowering developers and business leaders to build in no time reliable applications on its platform. The company launched its developer community during AIPCon 4, which Latimore notes is “seeing strong traction.”
There were also some customer presentations at the conference, highlighting how the platform can be used. Examples included a rail car company that saved millions annually through an inventory and supply chain management solution; an auto parts firm that constructed a records management system to quickly identify internal operational issues and a sepsis early detection system used in one hospital that is responsible for saving 300 lives per year.
With Latimore believing enterprise AI penetration is still below 1%, there’s a “long runway ahead” for further growth.
But while the analyst anticipates that “strong growth” is indeed on the menu at Palantir, he has reservations that stop him from fully getting on board. These include: “valuation, comps getting tougher in 4Q, 2Q leading indicator metrics that suggest potentially less upside going forward, and variability in government deals especially under continuing resolutions.”
Accordingly, Latimore rates Palantir shares as Market Perform (i.e., Neutral), while his $35 price target implies the stock will remain rangebound for the time being. (To watch Latimore’s track record, click here)
Turning now to the rest of the Street, where the analyst consensus rates the stock a Hold, based on a mix of 5 Holds, 6 Sells and 4 Buys. That said, consensus might as well have said Sell, as the $27.08 average price target factors in a one-year decline of ~24% from current levels. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
