Palantir Stock Scores a New Street-High Price Target

Palantir (NASDAQ:PLTR) is a bit of a polarizing name – some view it as a groundbreaking software company redefining how data is leveraged across government and enterprises, while others see it as an overhyped stock trading more on narrative than fundamentals.

When it comes to Wall Street opinions, there’s no doubt whatsoever on which side of the argument Wedbush analyst Daniel Ives comes down on.

“We believe Palantir has a ‘golden path to become the next Oracle’ over the coming years and while the valuation is expensive today we see the Messi of AI as a core winner in the trillions of AI spend over the next few years,” the analyst said.

Ives continues to rank Palantir as one of the ‘top names’ in his IVES AI 30 ETF due to its “game-changing AIP strategy,” which is rapidly establishing itself as a critical platform for businesses exploring AI applications across various industries. Both new and existing clients in the commercial and government sectors are eager to adopt multiple components of Palantir’s tech, as the company rolls out increasingly valuable use cases. With more organizations aiming to boost efficiency through AI, Palantir is, in Ives’ view, “leading the charge.”

Importantly, this momentum is translating into real-world results. Ives notes that customers consistently report Palantir’s bootcamps deliver exceptional value and AI insights, leading to rapid sales cycles and “shortening eye popping conversion timelines” to deploy products, streamline workflows, and develop new use cases. “PLTR continues to see unprecedented demand for AIP based on our recent checks in the field,” the analyst adds.

Moreover, Palantir’s “enhanced product portfolio” – featuring advanced AI capabilities designed to be deployed safely, securely, and responsibly for the US government – is helping the company gain even more traction in the federal sector. On this front, Ives believes the Trump Administration provides an “additional tailwind,” as AI initiatives within the US government, including the Department of Defense, are accelerating. The increased AI investments under this administration, such as Project Stargate and other programs, are expected to benefit Palantir as Washington intensifies its focus on building out strategic AI infrastructure.

All this momentum, according to Ives, sets the stage for significant future growth. He argues that the market is underestimating the potential for Palantir’s AIP US commercial segment to grow into a revenue stream exceeding $1 billion within the next several years, at the same time that the company sits in the “sweet spot to benefit from a tidal wave of federal spending on AI across North America and Europe.”

Given these drivers, Ives has now raised his price target from $140 to a Street-high of $160, implying the stock will gain another 12% over the coming months. Unsurprisingly, Ives’ rating remains an Outperform (i.e., Buy). (To watch Ives’ track record, click here)

However, it’s worth noting that the Street’s overall take is much less exuberant. While 3 other analysts join Ives in the bull camp, the stock also sports 9 Holds and 4 Sells, resulting in a lukewarm Hold consensus rating. Meanwhile, the $108.27 average price target suggests the shares have already overshot by 24%. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.