Palantir Technologies NASDAQ:PLTR shares rose 5% Monday after Oppenheimer reaffirmed its Outperform rating and maintained a $200 price target ahead of the company's second-quarter earnings report.
Oppenheimer said Palantir could exceed second-quarter revenue expectations and raise its full-year outlook, supported by continued demand for its artificial intelligence software from both U.S. government agencies and commercial customers. The firm's price target implies notable upside from the stock's recent closing price.
Palantir is scheduled to report second-quarter results on Aug. 3. The company entered the second half of the year after posting record first-quarter revenue of $1.63 billion, up 85% from a year earlier. U.S. commercial revenue increased 133% to $595 million, while U.S. government revenue rose 84%. Management also lifted its full-year revenue outlook to $7.65 billion to $7.66 billion.
Despite the strong operating performance, Palantir has faced valuation concerns because it trades at premium earnings and sales multiples compared with many software peers. Analysts continue to watch whether the company's expanding AI business can support its elevated valuation over time.