RAYMOND JAMES: Palantir, “Delivers Profitability Ahead of Schedule With Strong Print”

As global geopolitical tensions persists and macro uncertainty remains, we believe companies, like PLTR that are indexed (56% of sales) to non-cyclical government budgets sit on an advantageous perch that drives more stability in its results. We see past contract performance, technical capabilities, and culture aligned with western government’s as uniquely positioned to grow their government business from $1 to $2 B in ~3 years irrespective of macro conditions. This would also fuel positive estimate revisions across the Street which has generally underestimated the government opportunity. With positive cash flow, the pivot to profitability, expectations that appear reasonable, and ~16% of the market cap in cash we are reiterating our Strong Buy rating and price target of $15