Palantir Stock Gets a New Street-High Price Target

The world of investing has been captivated by the meteoric rise of AI stocks, and it’s no surprise why. The soaring value of artificial intelligence and the explosive growth of data have fueled this trend, making AI stocks a top priority for many investors.

And that brings us to Palantir (NYSE:PLTR), a company that specializes in developing intelligent systems that utilize artificial intelligence (AI) to empower human-driven analysis. The company’s platforms focus on data management and security, allowing users to tackle complex questions without requiring statistical or computational expertise.

Collaborating closely with clients, Palantir deploys products, streamlines workflows, and delivers rapid operational outcomes, all while ensuring privacy protection. Its core mission revolves around tackling crucial challenges confronted by institutions across diverse industries. By doing so, the solutions empower data-driven decision-making in environments where large datasets are susceptible to substantial risks concerning privacy and civil liberties.

All the above, says Wedbush analyst Daniel Ives, represents Palantir’s “secret sauce.” The analyst believes it’s a recipe the company stands to use to its advantage as we enter the era of the 4th Industrial Revolution. Palantir is actively participating in the prevailing trend across industries, where businesses are adopting recent generative AI innovations to optimize operations and reduce expenses.

“Given the company’s extensive experience handling customer data,” notes the 5-star analyst, “PLTR’s transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data.”

Ives anticipates that Palantir will make the most of the expanding range of new use cases in the coming 6-12 months. This advantage will stem from the company’s extensive partner ecosystem and robust product capabilities, allowing it to cater to the growing demand for enterprise-scale generative AI solutions. “This is early innings on a sum-of-the-parts AI story just on the cusp of monetizing this massive green field AI opportunity,” Ives further notes.

And while the AI-powered solutions landscape is extremely competitive – at least on the commercial side, where there’s far more competition than in the government segment where Palantir has an established presence – Ives thinks the company has enough attributes that separate it from the pack.

“In a demand environment that looks to evaluate the legal, ethical, and trustworthy effects of AI deployment, Palantir’s existing relationships with secure organizations such as the CIA, DoD, JPM, Cisco, AWS, Google, and MSFT among others, validate PLTR’s excellence in security and compliance demonstrating the company’s ability to provide trusted solutions in sensitive environments,” Ives explained.

Based on all the above, then, and going so far as to call the company the “Messi of AI,” Ives initiated coverage of PLTR stock with an Outperform (i.e., Buy) rating and Street-high $25 price target. The figure suggests shares will climb 40% higher over the coming months. (To watch Ives’ track record, click here)

Ives’ take, however, is far more bullish than any other on Wall Street. PLTR stock claims a Hold consensus rating, based on 3 Buys, 6 Holds and 4 Sells. Shares look overvalued to most; according to the $13.13 average target, they will post a decline of ~34% in the year ahead. (See Palantir stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.