2023 has been the year AI broke out and the stocks seen as the ones most likely to benefit from its adoption have been reaping the rewards. One of those is undoubtably Palantir (PLTR) with the shares up by 137% year-to-date.
The big data specialist has been making use of AI for several years now, but it has doubled down on it AI endeavors this year in a very timely fashion, via the launch of its Artificial Intelligence Platform (AIP).
To showcase the product’s uses and new users along with the commercial opportunities at play from its offerings, the company held its AIPCon customer conference last week in Palo Alto. Wedbush analyst Dan Ives attended the event and came away very impressed.
“With each conversation we had with many existing and potential customers of Palantir across a myriad of industries (financial services, oil & gas, transportation, manufacturing, healthcare, software, services, etc.) learning pain points and various opportunities to improve efficiencies from a corporate perspective, we came away with one final conclusion from the event; Foundry (Palantir’s operations platform for the commercial sector) and AIP are leading the commercial front with a loyal consumer base paving the way for future success stories,” the 5-star analyst said.
The fact Palantir is making further inroads in the commercial sector is important as it shows that it can build on what has traditionally been its main breadwinner – government work.
Using the PLTR suite, clients can enhance their productivity substantially, creating more opportunities for growth as efficiencies improve, as witnessed by Ives at the event. The analyst is confident Palantir is on the “golden path for its monetization story” in the commercial sector and is well-prepared to take advantage of the positive commercial spending trends in the second half of 2023 and into 2024.
“With a strong product portfolio coupled with AI,” he summed up, “we expect PLTR to garner a meaningful share of what we believe to be a $1 trillion AI Global TAM as enterprise and government ecosystems rush to implement useful platforms for automating complex workflows.”
It’s hardly surprising to learn, then, that Ives has an Outperform (i.e., Buy) rating on the shares to go alongside a Street-high $25 price target. The implication for investors? Upside of 66% from current levels. (To watch Ives’ track record, click here)
That said, not everyone on the Street is quite as bullish. All told, the stock claims a Hold consensus rating, based on 6 Holds and Sells, each, plus 3 Buys. Most also think the shares are somewhat overvalued; going by the $13.88 average target, they are expected to move 8% lower over the coming months. (See Palantir stock forecast on TipRanks)
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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.
