Palantir continues to drive deals through AIP, bootcamp strategy: Wedbush

Palantir (NYSE:PLTR) continues to accelerate multi-year, multi-million dollar deals to its artificial intelligence platform through its bootcamp strategy, according to Wedbush.

“With AI spending expected to ramp significantly within IT budgets in 2025, we believe the Messi of AI Palantir is in a prime spot to continue expanding its pipeline/deal flow while providing more use cases coming forward to address critical problems across industries and empower data-driven decision-making with a comprehensive suite of AI/ML solutions,” said Wedbush analyst Daniel Ives, in an investor note.

Wedbush maintains its Outperform rating on the stock and increased its 12-month price target to $45 from $38.

“New and existing customers across the commercial and federal landscapes continue signing up for multiple aspects of the PLTR tech stack based on our recent checks as the company introduces new valuable use cases to customers with more organizations seeking to drive efficiencies on the back of AI,” Ives said.

Palantir has inked several large contracts with the U.S. government in the past week alone, including a pair of $100M contracts with the DEVCOM Army Research Laboratory and another related to the Maven Smart System AI tool.

“We believe boot camp deal conversions will be the theme for Karp & Co. heading into the next few quarters with the Street still underestimating core AIP growth over the next few years in our view,” he added.

Palantir introduced its boot camp sales strategy during the second quarter of 2023. It consists of holding a series of workshops to train potential customers in using AI to solve real-world business problems.

The tactic has allowed Palantir to “fast track signing multi-year multi-million-dollar contracts, and we believe it will continue to be a differentiating factor in the Palantir story,” according to Wedbush.