Wedbush analysts initiated research coverage of Palantir (NYSE:PLTR) with an Outperform rating and a $25 per share price target.
“We believe Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade,” they said in an initiation note on Friday.
Palantir shares rose almost 5% in pre-market Friday trading.
The analysts see Palantir as well-positioned to succeed as the world embarks on the “4th Industrial Revolution”.
“Given the company's extensive experience handling customer data, PLTR’s transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data. By capitalizing on its data-driven foundation, the company can harness the power of emerging LLMs to enhance platform capabilities,” they added.
Along these lines, Wedbush analysts see the clear potential for Palantir to capitalize on the rise in the number of new use cases over the next 6-12 months.
They have “a high level of confidence” in Palantir to ride the ongoing AI wave and add that risk/reward at current levels is attractive.
“We believe the stock can continue to re-rate and trade well above its software peer group over time as Palantir continues to expand and capitalize on this AI revolutionary period,” the analysts concluded.
Palantir stock is up over 150% year-to-date.