Palantir sees price target raised at Wedbush on growing confidence in its AI strategy

Wedbush maintained its Outperform rating on Palantir Technologies (NASDAQ:PLTR) and raised the price target on the stock to $160 from $140, citing confidence in the company’s AI strategy, as the company is leading the software AI Revolution ahead.

Analysts led by Daniel Ives said they were raising the price target on Palantir as their recent checks and growing confidence in the company’s AI strategy are key to the bull thesis on Palantir playing out for the next 12 to 18 months.

The analysts believe Palantir has a “golden path to become the next Oracle” over the coming years, and while the valuation is expensive currently they see the company as a core winner in the trillions of AI spend over the next few years.

“Palantir remains one of our top names to own in the “IVES AI 30” as its game-changing AIP strategy is quickly becoming a key foundational platform for enterprises heading down the AI use case path across verticals,” said the analysts.

Ives and his team noted that new and existing customers across the commercial and federalspace are waiting in line to sign up for multiple aspects of the Palantir tech stack as the company introduces new valuable use cases to customers, with more organizations seeking to drive efficiencies on the back of AI with Palantir leading the charge.

The analysts believe the Street is underestimating the over $1B revenue stream that the company’s Artificial Intelligence Platform, or AIP, U.S. commercial business can evolve into over the next few years and the technology competitive moat that CEO Alex Karp and team have built.

“To this point we believe the Trump Administration clearly represents an additional tailwind for PLTR with AI initiatives within the US government including the DoD accelerating as AI remains a strategic focus on the federal front,” said Ives and his team.

The increased AI investments being seen under the Trump Administration with Project Stargate among other initiatives, should benefit Palantir on the government vertical as more focus within the Beltway heads down the strategic AI infrastructure build-out stage, according to the analysts.

In addition, the analysts said they believe the recent NATO deal win represents an additional tailwind for Palantir with AI initiatives across the U.S. and European governments accelerating as AI remains a strategic focus on the federal front with Palantir in the “sweet spot to benefit from a tidal wave of federal spending on AI across North America and Europe.”

The analysts noted that 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.”

Shares of Palantir were largely flat premarket on Thursday.