On Thursday, Wedbush maintained a positive outlook on Palantir Technologies Inc . (NASDAQ:PLTR), reiterating an Outperform rating and a $75.00 price target. The stock, currently trading near its 52-week high of $84.80, has delivered an impressive YTD return of ~380%.
According to InvestingPro analysis, the company appears to be trading above its Fair Value, with multiple valuation metrics suggesting premium pricing. The firm's analysts highlighted Palantir's strong positioning in the rapidly growing artificial intelligence (AI) market, which is expected to see increased spending within IT budgets by 2025.
Palantir, referred to as the "Messi of AI" by the analysts, is anticipated to continue expanding its pipeline and deal flow. The company is set to provide more use cases to tackle critical problems across various industries, thereby empowering data-driven decision-making with its comprehensive suite of AI and machine learning (ML) solutions.
The firm's analysts pointed out that Palantir has been a central player during the AI Revolution, with expanding use cases for its flagship products. This has led to a growing partner ecosystem and a surge in demand for enterprise-scale and ready generative AI solutions. With an impressive gross profit margin of 81.1% and revenue growth of 24.5% over the last twelve months, InvestingPro data reveals Palantir's strong operational efficiency. Subscribers can access 20+ additional ProTips and comprehensive financial metrics in the Pro Research Report.
According to Wedbush, these factors are poised to be key growth drivers for Palantir's US Commercial business over the next 12 to 18 months, as more companies embark on AI initiatives with Palantir's technologies.
Now valued at $187.7 billion, the analysts expressed confidence in Palantir's potential to evolve into a company comparable to Oracle (NYSE:ORCL) in the next decade, led by its AI Platform (AIP), despite skepticism from other market observers. For detailed valuation analysis and growth projections, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Palantir Technologies Inc. has been the focus of several significant developments. The company has secured an extended partnership with the U.S. Army, valued at approximately $400.7 million, reinforcing its role in providing data analytics solutions to the military sector. UBS analyst Karl Keirstead initiated coverage on Palantir with a neutral rating and an $80 price target, citing a positive outlook on the company's fundamentals and revenue growth projections for 2025/2026.
Palantir has also announced its first group of partners for its Warp Speed initiative aimed at advancing American manufacturing through artificial intelligence and technology. The cohort includes Anduril Industries, L3Harris, Panasonic (OTC:PCRFY) Energy of North America, and Shield AI. On another note, the company has partnered with Pray.com to enhance its language translation capabilities using Palantir's Ontology Software (ETR:SOWGn) Development Kit (OSDK).
Despite these developments, analysts from William Blair have maintained an underperform rating on Palantir due to concerns about the company's revenue projections. They project that Palantir will fall short of its $4.5 billion revenue target by over $700 million.
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