- The Palantir stock was rated a “buy” this week by Bank of America analysts with a price target of $ 13.
- The bank’s target represents a potential upside of almost 50% from Tuesday’s closing price.
- The bank predicted that growing concerns about national security would lead to a 30% jump in revenue.
Palantir received a “buy” rating from Bank of America on Tuesday, where the bank began covering the data software company with a bullish outlook on its strong position in the AI-based technologies market.
Bank analysts gave a price target of $ 13, which would represent almost 50% upside from Tuesday’s closing price of $ 8.71
Palantir shares have risen 14% in the past week and have risen to $ 9.23 on the open market from $ 8.09 last Wednesday. The increase marks a soft recovery for the company, which reported a loss of $ 101 million in earnings in the first quarter.
Despite a tough start to the year, BofA analysts predicted 30% revenue growth for Palantir, speculating that its first-mover advantage in the industry and its secure technology would give the company a leg up as AI demand continues to grow.
Increased national security spending in the midst of the Russia-Ukraine conflict will also contribute to earnings growth, something that Palantir has recognized would be one of its key growth strategies. Earlier this month, Palantir extended an existing contract of over $ 50 million with the US Space Systems Command.
Although analysts cited concerns about the company’s low volume of commercial business, they provided positive prospects for future growth: “Increased urgent need for modernization of military and intelligence capabilities should provide significant opportunities,” analysts said.