Palantir (NYSE:PLTR) was initiated with a Buy rating and a $29 per share price target by analysts at Argus in a note on Monday.
The investment firm said the company, which provides data management and analytics software for highly complex government and business applications, "has been dramatically improving its profitability and cash flow over the past year."
"While Palantir has long served the needs of the U.S. defense and intelligence community, the company has expanded into the commercial sector with data management and analytics platforms capable of providing solutions to complex business problems," analysts at Argus explain.
The firm notes that Palantir's government business generated 55% of revenue in 2023, and while they expect this segment to continue to grow, the commercial business, particularly in the U.S., looks to be its future growth driver.
"Like many enterprise software companies we cover, Palantir is reliant upon new AI-powered applications to expand its business," adds Argus. "PLTR shares are highly volatile and priced at a premium, although we also see Palantir as a highly differentiated software company."