Dan Ives of Wedbush Securities has increased his price target for Palantir Technologies Inc. (NYSE:PLTR), signaling strong prospects in AI applications.
What Happened: On Friday, Ives announced a bullish adjustment to his price target for Palantir, raising it from $30 to $35. Ives cited recent field checks that suggest the company's AI and data analytics platform is becoming essential for U.S. enterprises. He likened Palantir's AI platform to soccer star Lionel Messi, referring to it as the "Messi of AI thesis."
In a note shared by Wedbush, the analysts led by Ives also expressed that Palantir is an "undiscovered gem" in the AI revolution.
"With a strong product portfolio coupled with AI, 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," the note read.
Palantir's stock saw a modest rise in premarket trading by 1.66% at $26.90.
Raising our price target on Palantir from $30 to $35. Our recent checks on Palantir in the field have been incrementally more bullish as we believe the AIP foundation is becoming viewed by many US enterprises as the "launching pad of AI use cases". Messi of AI thesis.
— Dan Ives (@DivesTech) March 8, 2024
Why It Matters: The revised price target from Ives comes amid a broader reevaluation of Palantir by the analyst community who have set an average 12-month price target of $20.22, a notable increase from the previous average of $18.25. This suggests a growing optimism around the company's prospects.
Moreover, Jim Cramer, the host of CNBC's "Mad Money," has recently endorsed Palantir as a strong buy, reinforcing the positive sentiment. His endorsement, as reported by CNBC, aligns with the bullish outlook shared by Ives.
Adding to the company's positive news, Palantir has secured a significant $178 million contract extension from the U.S. Army. The deal involves the development of advanced AI/ML technologies, further cementing Palantir's role in the defense sector and its AI expansion prospects.
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