Wedbush is still bullish on Palantir Technologies Inc. (NASDAQ:PLTR), keeping its Outperform rating and $120 price target, despite recent market turbulence. Analysts are doubling down on Palantir’s position as a leader in the AI race, with its AI-driven products (AIP) playing a major role in its future growth. The company’s gross profit margin of 80.25% and 28.79% revenue growth highlight its solid operational footing. Wedbush is confident that Palantir could reach a trillion-dollar market cap in the coming years, thanks to its role in the AI revolution. They liken Palantir’s strategy to playing chess in an AI arms race, while competitors are still playing checkers.
That said, not all analysts are on the same page. Jefferies continues to be cautious with an Underperform rating and a $60 price target, pointing to weak international revenue growth and concerns over Pentagon budget cuts. However, Loop Capital is leaning in, initiating coverage with a Buy rating and a price target of $141, citing Palantir’s dominance in AI and GenAI. Even as defense sector uncertainty lingers, Palantir is making strides in new partnerships, such as its collaboration with SAUR Group to enhance contract management with Palantir Foundry’s Generative AI. These moves show the company’s ability to expand beyond its traditional markets.
Palantir’s future is a mixed bag, with some analysts seeing big upside potential while others stay wary of current challenges. For those in the bull camp, the company’s AI-driven growth, strategic partnerships, and strong U.S. revenue growth are key reasons to stay optimistic. As the company pushes forward, investors will be keeping a close eye on how it navigates market hurdles and seizes new opportunities in the ever-expanding AI space.
This article first appeared on GuruFocus.
