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Palantir assigned Street-high targets by Wedbush and BofA

Published 26/11/2024, 04:14 am
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Investing.com -- Palantir Technologies received bullish endorsements from Wedbush and Bank of America (NYSE:BAC) on Monday, with both assigning the company a Street-high $75 price target, citing the transformative potential of its AI-driven software and expanding market opportunities.

Wedbush raised its price target for Palantir (NYSE:PLTR) from $57 to $75, maintaining an Outperform rating on the stock. They highlighted the company's role in the ongoing AI revolution.

Wedbush analysts described Palantir as the "Messi of AI growth," forecasting unprecedented demand for its AIP (Artificial Intelligence Platform) as more enterprises adopt AI use cases.

They also noted Palantir's strategic positioning in the "enterprise consumption phase" of generative AI starting in 2025. The firm emphasized the broad applicability of Palantir's software suite, projecting strong growth over the next 12–18 months.

Bank of America echoed this sentiment, raising its price objective from $55 to $75.

The firm likened Palantir's leadership to historical moments of industrial transformation.

Analysts pointed to Palantir's pivotal role in digitizing industries and enhancing operational efficiency, dubbing its software "war-winning."

BofA increased its growth projections for Palantir's government and commercial segments, noting a shift in corporate priorities toward software-driven margin expansion over traditional scaling methods.

The bank also highlighted potential catalysts for Palantir, including eligibility for the NASDAQ 100 Index, which could spur further investor interest.

However, the analysts, who have a Buy rating on the stock, flagged a $120 million stock-based compensation expense triggered by the company's recent stock price surge, which could weigh on GAAP net income in the short term.

Both firms underlined Palantir's expanding competitive moat and long-term growth potential in government and commercial markets, positioning it as a leader in the rapidly evolving AI and software landscape.

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