Wedbush analyst Dan Ives has reaffirmed his $75 price target on Palantir Technologies (NYSE:PLTR), citing strong growth potential amid the AI revolution.
What Happened: On Monday, while appearing in a segment of CNBC, Ives argued that the market is undervaluing Palantir's potential, especially in the software sector.
He highlighted that the company's enterprise solutions could generate billions in revenue, positioning Palantir as a future leader like Oracle (NYSE:ORCL).
Despite the current market price hovering around $37, Ives remains optimistic about Palantir's growth trajectory in the coming years.
He acknowledged the skepticism from bears but maintained that the company's advancements in AI and software use cases are unparalleled.
"The haters will continue to hate," Ives said, adding, "They are still underestimating when it comes to the software, the use cases." He continued by saying that there's no product out there that matches what Palantir has done with AIP.
Dan Ives breaks down why $PLTR is just scratching the surface pic.twitter.com/W3hSrOhBAG
— Tom Nash (@iamtomnash) November 25, 2024
Palantir's Advanced Intelligence Platform or AIP, introduced in April 2023, integrates advanced AI features like large language models into the company's Foundry and Gotham platforms. It aims to streamline decision-making in sectors such as defense and intelligence.
Why It Matters: The endorsement from Ives comes as Palantir experiences a remarkable ascent, with its stock surging 289.928% year-to-date.
Ives has previously raised Palantir's price target to $75, highlighting 2025 as a pivotal year for AI implementation across the industry.
This optimism is shared with other software companies like Elastic NV (NYSE:ESTC) and Snowflake Inc. (NYSE:SNOW), which were also upgraded to Buy ratings.
Despite the bullish outlook, some analysts have flagged risks in Palantir's valuation. Hedge fund titans like Renaissance Technologies and ARK Investment Management have trimmed their stakes, selling over 3 million shares in the third quarter, although they still hold significant positions.
Palantir's third-quarter earnings report showed a revenue beat, with total revenue up 30% year-over-year, driven by "unrelenting AI demand."
U.S. revenue grew 44% year-over-year, with commercial and government sectors showing significant growth, further supporting Ives' bullish stance.
Price Action: Palantir's stock finished Monday at $64.65, up 0.47% during regular trading. However, it dropped 1.24% in after-hours trading, according to data from Benzinga Pro.
Photo by Spyro the Dragon on Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
