Palantir NASDAQ:PLTR received a fresh vote of confidence from Citi, which raised its earnings estimates on expectations that the company's U.S. commercial business will regain momentum.
Citi analyst Tyler Radke expects Palantir's commercial growth to rebound after an unexpected slowdown in the first quarter. He pointed to stronger partner feedback, broader adoption of its Artificial Intelligence Platform and expansion into new industries and international markets.
Palantir sells data analytics and AI software to governments and large companies. Its platform helps customers combine large datasets, automate decisions and build AI-powered workflows across areas such as defense, healthcare, legal services and manufacturing.
Citi now expects revenue to grow 53% in fiscal 2027, well above Wall Street's roughly 45% forecast, with commercial revenue projected to rise 67%. Radke kept his Buy rating but lowered the price target to $200 from $225 because of a lower valuation multiple.