Palantir Technologies (PLTR) has announced a new enterprise agreement with oil and gas major bp (BP). This agreement, spanning five years, will extend the data analytics company and bp’s decade-long partnership and will introduce advanced artificial intelligence (AI) capabilities through Palantir’s Artificial Intelligence Platform (AIP) software.
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Details of PLTR and BP’s Agreement
The collaboration between the two companies, which began in 2014, has already seen Palantir’s software widely deployed across bp’s oil and gas operations. This deployment includes bp’s offshore platforms in the North Sea and Gulf of Mexico, as well as the Khazzan gas fields in Oman.
Now, with the integration of Palantir’s AIP software into bp’s operations, the company aims to leverage large language models (LLMs) to enhance safety, reliability, and efficiency. The AI-driven software will analyze vast amounts of data, providing bp with actionable insights and recommended actions that improve decision-making processes.
Meanwhile, news of Palantir’s inclusion in the S&P 500 Index (SPX) has given PLTR stock a boost in pre-market trading. This development has garnered positive reactions from market analysts, including Wedbush’s Daniel Ives.
Wedbush Analyst Approves PLTR’s S&P 500 Inclusion
Reacting to Palantir’s S&P 500 inclusion, Wedbush analyst Daniel Ives described it as a “validation moment for the Palantir story” that investors had eagerly anticipated over the past year. He also highlighted that many skeptics have underestimated Palantir’s potential for profitability and cash flow, especially with the launch of its AIP and the expansion of its U.S. commercial business. He views the AIP commercial business in the U.S. as a key driver of the company’s future success.
Moreover, Ives emphasized that Palantir’s AIP has already proven its capability to assist customers in managing complex tasks by using AI to suggest and implement real-world actions. This functionality, he argued, is likely to drive a “multi-year” cycle of deals as more companies seek AI solutions that deliver both value and innovation.
Given these positive developments, Ives remains bullish on PLTR stock, maintaining a Buy rating and a price target of $38. This target implies an upside potential of 25.3% from current levels, signaling confidence in Palantir’s growth trajectory.
Is PLTR a Good Stock to Buy?
Analysts remain sidelined about PLTR stock, with a Hold consensus rating based on three Buys, five Holds, and six Sells. Over the past year, PLTR has surged by more than 90%, and the average PLTR price target of $25.42 implies a downside potential of 16.2% from current levels.
