Palantir stock gets a 'buy' rating at Bank of America as analysts see nearly 50% upside on the firm's 'dominant' position in the AI market

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  • Palantir stock was rated a “buy” this week by Bank of America analysts, with a price target of $13.

  • The bank’s target represents potential upside of nearly 50% from Tuesday’s closing price.

  • The bank predicted that growing national security concerns will lead to a 30% jump in revenue.

Palantir received a “buy” rating from Bank of America on Tuesday, with the bank initiating coverage of the data software firm with a bullish outlook on its strong position in the market for AI-based technologies.

Analysts at the bank gave a price targets of $13, which would represent nearly 50% upside from Tuesday’s closing price of $8.71

Palantir stock has risen 14% in the past week, climbing to $9.23 at the market open from $8.09 last Wednesday. The increase marks a soft rebound for the company, which reported a loss of $101 million in its first quarter earnings.

Despite a rough start to the year, the BofA analysts predicted 30% growth in revenue for the Palantir, speculating that its first-mover advantage in the industry and its secure technology would give the firm a leg up as AI demand continues to grow.

Increased national security spending in the midst of Russia-Ukraine conflict would also contribute to earnings growth, something that Palantir has acknowledged would be one of its main growth strategies. Earlier this month, Palantir expanded an existing contract by over $50 million with U.S. Space Systems Command.

Although analysts cited concerns over the company’s low volume of commercial business, they gave a positive outlook for future growth: “Increased urgency on modernizing military and intelligence capabilities should provide significant opportunities,” analysts said.

Read the original article on Business Insider

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