Goldman Sachs has praised Palantir’s revenue growth trends, seeing strong prospects for achieving revenue targets on the back of growing backlog and collaboration with big names like International Business Machine (NYSE: IBM). Debuted through direct listing in September with a market cap of $16.5 billion and a share price of $10, the data analytics company’s shares rallied more than 200% to an all-time high of $40 at the beginning of this year. However, the latest selloff has erased 29% of value in the past couple of days due to investors’ concerns over a surprise loss. Its December quarter loss per share came in at $0.08, missing Wall Street consensus expectations for the positive $0.02 earnings per share.
A strong revenue forecast would support gains
The market analysts are optimistic over the long-term picture, with expectations that Palantir is on the verge of generating $4 billion-plus in revenues by 2025. The company has generated 47% year-over-year revenue growth in fiscal 2020, driven by government and commercial revenue growth. On top, Denver-based Palantir expects first-quarter revenue to grow 45% from the year-ago period, but revenue growth is forecasted to drop in the second half. For the full 2021, it guides growth greater than 30% from 2020.
