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Palantir Stock: Wedbush’s Daniel Ives Lifts Price Target to $120 for the “Messi of AI Story”
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Palantir Stock: Wedbush’s Daniel Ives Lifts Price Target to $120 for the “Messi of AI Story”

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Wedbush analyst Daniel Ives lifted the price target on Palantir stock to $120 from $90 and reiterated a Buy rating. Ives believes that Palantir is the Tesla of the future and can cross $1 trillion in market cap in about five years, thanks to the AI wave.

AI (artificial intelligence) darling Palantir Technologies (PLTR) stock earned a price target lift from Wedbush analyst Daniel Ives. The analyst called Palantir the “Messi of AI Story” and lifted the price target to $120 from $90, while keeping a Buy rating. Ives’ revised price target reflects a 15.6% upside potential from current levels. Ives believes that Palantir could be worth over $1 trillion in market cap in the next three to five years.

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PLTR stock gained nearly 24% yesterday on beating Q4 FY24 estimates and providing an upbeat guidance. Palantir stock also hit an all-time high of $106.91 on Tuesday, pushing its market capitalization to over $200 billion.

Ives’ Views on Palantir’s Growth Potential

Ives was impressed by Palantir’s fourth-quarter results and guidance, leading him to revise his model estimates for Fiscal 2025. The analyst noted that Palantir is one of the transformational tech stories that occur every decade and change the operational landscape. He was encouraged by the 43% year-over-year growth in customer count. Ives also noted that in Q4, the company secured 129 deals that were at least $1 million in value and 58 deals worth at least $5 million.  

Additionally, Ives believes that Palantir is spurring the AI revolution with its AIP (artificial intelligence platform) product moat, which remains matchless. Interestingly, Ives stated that PLTR is playing chess, while the remaining AI companies are playing checkers.

Also, he feels that Palantir bears have missed the opportunity to dive into one of the generational tech stories since they cannot relate to AI, nor can they relate to Palantir’s high valuation. Ives also goes on to state that buying Palantir today is like buying Tesla (TSLA) in 2015, and bears are clearly missing on this growth story.

CEO Karp Says Palantir Still in Early Stages

Palantir CEO Alex Karp also shares the same views as Ives. In the Letter to Shareholders, Karp noted that PLTR is still in the early stages of the AI revolution and is yet to bear the massive fruits of its labor. Karp highlighted that the company is witnessing equal traction in both its commercial and government segments.

In Q4 2024, sales from the PLTR’s U.S. commercial segment jumped 64% year-over-year. At the same time, sales from the U.S. government segment rose 45% compared to the prior-year quarter.

Is Palantir Stock a Good Buy?

Not all analysts share the same enthusiasm for Palantir stock as Ives. On TipRanks, PLTR stock has a Hold consensus rating based on two Buys, 11 Holds, and five Sell ratings. The average Palantir Technologies price target of $81.47 implies 21.5% downside risk from current levels. In the past year, PLTR stock has rallied nearly 521%.

See more PLTR analyst ratings

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