Wedbush raised the price target on Palantir Technologies’ (PLTR) stock to $230 from $200 ahead of the company’s earnings results on Nov. 3 post-market.
The firm maintained its Outperform rating on the stock.
Analysts led by Daniel Ives said they believe the earnings/guidance will be another major step in the right direction as the company builds out this “AI juggernaut.”
“While investors will continue to fret about valuation we believe this will ultimately be a trillion dollar market cap over the next 2-3 years as Palantir builds out its commercial business into a multi-billion dollar machine monetizing the use cases in the AI Revolution,” said the analysts.
The analysts believe the Street’s top-line estimate of $1.09B is very beatable as the company’s Artificial Intelligence Platform, or AIP, continues to be at the center of delivering value to customers with the Street still underestimating the company’s commercial efforts.
The analysts added that Palantir continues to see unprecedented demand for AIP based on their recent checks in the field across commercial and government landscapes by taking AI solutions that solve problems across organizations at enterprise scale driving new customer conversions and existing deal expansions.
“We are hearing from many customers that bootcamps are providing unmatched value and AI insight leading to very quick sales cycles and shortening eye popping conversion timelines to deploy products, optimize workflows, and form use cases,” said Ives and his team.
The analysts noted that the increased AI investments being seen under the Trump Administration, with Project Stargate among other initiatives, should benefit Palantir on the government vertical.
“Palantir is well positioned for this new disciplined spending environment and this will ultimately be a positive growth catalyst as Karp & Co. get a bigger seat at the table globally…including across the Middle East with this AI adoption curve now front and center across the region,” said the analysts.
Shares of Palantir rose about 2% premarket on Monday.