‘A Leader in the Modern Knudsen Movement’: Bank of America Applauds Palantir Stock

Palantir (NASDAQ:PLTR) has taken the AI opportunity by the horns, riding it all the way to a year-to-date gain of 283% for the stock.

There might be a lot of hype involved here but for Bank of America’s Mariana Perez Mora, an analyst ranked in the top 2% of Wall Street stock pros, the company’s value proposition merits an analogy to events almost a century old.

In May 1940, President Roosevelt enlisted Bill Knudsen to assist in building the arsenal needed to secure victory in WWII. By the war’s conclusion, the US was manufacturing aircraft at 100 times the rate of 1939. Knudsen’s impact enhanced government procurement processes and facilitated the inclusion of new participants in the military market.

“We see Palantir Technologies and CEO Alex Karp leading the modern Knudsen movement,” the 5-star analyst said. “PLTR has demonstrated their ability to digitize enterprises and battlespaces from finances to missile production. In a world where efficiency, innovation, safety, and speed are the most valuable assets, we see Palantir as the enabler and winner in this new era.”

Perez Mora believes there is now a shift in perspective with fixed assets viewed as a liability. In the meantime, software has become a “critical asset in industrial production,” driving automation, the analysis of data, real-time monitoring, and process control. It now accounts for 17% of US non-residential private fixed investments. As companies increasingly rely on software and AI to boost margins, rather than relying on scale through fixed assets, the analyst thinks Palantir is “poised to dominate.” “The complexity of PLTR’s Ontology is invaluable to operationalize genAI as it embraces the security, governance, and data-robustness challenges,” she went on to add.

Despite the influx of new commercial customers, partners, and distribution channels, Perez Mora thinks there is still a “long runway ahead” while penetration in both government and commercial sectors is still in the early stages.

The bullish outlook translates to a new forecast. Accounting for “stronger than expected momentum” in both the US commercial and government sectors, Perez Mora now expects the company to generate $4.8 billion in sales in 2026e, up from the previous forecast of $4.6 billion. Meanwhile, the Street is calling for $4.2 billion.

To this end, Perez Mora rates PLTR shares a Buy, while raising her price objective from $55 to a Street-high of $75, implying the shares will gain another 14% over the next 12 months. (To watch Perez Mora’s track record, click here)

That said, the bullish takes are few and far between on Wall Street right now; the stock claims a lukewarm Hold (i.e. Neutral) consensus rating, based on a mix of 7 Holds, 6 Sells and just 3 Buys. Additionally, the $38.73 average price target factors in a one-year slide of 41%. (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.