Palantir Technologies, Inc.
The Palantir Analyst: In a note published late Wednesday, analyst Daniel Ives maintained an Outperform rating and lifted the price target for the stock from $38 to $45. The analyst said the upward adjustment accounted for the firm's increasing confidence in the enterprise-driven AIP Strategy.
The Palantir Thesis: Wedbush's checks indicated that more enterprises are strategically discussing the potential deployment of Palantir's proprietary artificial intelligence platform - the AIP, in 2025, said Ives. "With AI spending expected to ramp significantly within IT budgets in 2025, we believe the Messi of AI - Palantir is in a prime spot to continue expanding its pipeline/deal flow," the analyst said.
Palantir, according to the analyst, has been expanding use cases for its marquee products that have helped expand its partner ecosystem, with rapidly rising demand across the landscape for enterprise-scale and enterprise-ready generative AI. He sees this as a major growth driver for the U.S. commercial business over the next 12 to 18 months.
New and existing customers across the commercial and federal government continue to sign up for Palantir's tech stack, Ives said, citing his channel checks. The key for the Alex Karp-led company is boot camp deal conversions, he said, adding that the boot camp strategy has helped the company to fast-track multi-year, multi-million-dollar contracts
From the customer's point of view, the analyst said Palantir's Foundry and AIP serve as strategic differentiators for enterprises in improving operations at scale. These help address the large concerns of enterprises, he added.
"In a nutshell, PLTR is firing on all cylinders around AIP and we believe this is a paradigm (and valuation) changer for the Messi of AI heading into 2025," Ives said.
Palantir Stock: Palantir ended Wednesday's session up 0.60% at $37.12, according to Benzinga Pro data. The stock has gained over 116% so far this year.
