"Messi in the world of AI": why does Wedbush advise buying Palantir stock?
Since the beginning of the year, the company's shares have risen by almost 90%
Details
Wedbush analyst Dan Ives raised his target price on shares of software developer Palantir from $140 to $160, recommending investors buy them (Outperform rating), reports Seeking Alpha. Wedbush's new target price implies the stock is up 12% relative to its closing price on July 9.
Ives said recent analysis by the company's analysts and their "growing confidence in the company's AI strategy" warrant an optimistic outlook for the next 12 months.
"We believe Palantir has a good chance of becoming the next Oracle in the coming years, and while the company is expensive right now, we see this "[Lionel] Messi in the AI world" as a key beneficiary of the multi-trillion dollar spending on artificial intelligence in the coming years," Ives wrote (quote via CNBC).
Palantir shares were down 1% in trading on Thursday. Since the beginning of the year, the company's shares have risen by almost 90%.
What does Wedbush see as the driver of growth?
The optimistic outlook is due in part to the fact that Palantir continues to maximize the use of its AIP artificial intelligence platform, which helps customers integrate data, make decisions and align operational processes. As a result the company's U.S. commercial revenue grew 45% year-over-year in the first quarter of 2025 to $373 million, writes Benzinga.
Ives and his team noted that new and existing Palantir customers in both the commercial and federal segments are lining up to tap into various components of Palantir's technology stack while the company offers customers valuable new use cases, Seeking Alpha writes.
Wedbush analysts believe the market is underestimating the revenue growth potential of Palantir from its AIP platform in the US. In their opinion, this commercial segment could bring the company more than $1 bln a year in the coming years. In addition, they emphasize that Palantir has no serious competitors right now.
Analysts also said they believe that the closing of Palantir's deal with NATO this April represents another additional boost for the company as AI initiatives in the U.S. and European governments accelerate and artificial intelligence remains a strategic priority at the federal level. Palantir is in an "ideal position" to capitalize on the strong wave of government spending on AI across North America and Europe.
What is Wall Street's advice to investors?
Most analysts following Palantir are cautiously bullish: according to data from MarketWatch, 16 of 28 advise holding the stock (Hold). Seven recommend Buy (Buy and Overweight) and five recommend Sell (Sell) on the stock. The average price target for the stock is more than 30% below the last closing price.
This article was AI-translated and verified by a human editor
