Palantir is 'the Messi of AI,' says analyst who thinks its stock can jump 45%

By James Rogers

Palantir's stock rises 7.6% Friday

Palantir Technologies Inc. is at the forefront of the artificial-intelligence revolution, according to analyst firm Wedbush, which has initiated coverage of the software maker with an outperform rating and $25 price target.

Shares of Palantir (PLTR) rose 7.6% Friday. The company's stock has risen 170.5% this year, outpacing the S&P 500's gain of 19.2%.

Related: Palantir is well positioned for AI wave, but Mizhuo analyst isn't ready to turn bullish on the stock yet

Palantir is "the Messi of AI on the golden track to success," Wedbush analyst Dan Ives wrote in a note Friday, making a comparison to Argentine soccer star Lionel Messi, who is currently enjoying a stellar start to his MLS career at Inter Miami. "In a nutshell, we believe Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade."

Ives also broke down what he describes as Palantir's "the secret sauce," writing: "Focusing on human-driven analysis by leveraging artificial intelligence, Palantir builds intelligent platforms for data management and security that enable users to address intricate questions without the need for statistical or computational expertise. The company works closely with customers to deploy products, optimize workflows, and produce operational results quickly while incorporating privacy-protective features."

Related:Some lesser-known AI plays are gaining steam with investors

Palantir has clinched partnerships with a host of companies, including Microsoft Corp. (MSFT), Cloudflare Inc. (NET) and IBM Corp. (IBM).

"We believe [Palantir] will capitalize on the expansion of new use cases over the next 6-12 months given its large partner ecosystem and extensive product capabilities, by servicing the rapidly increasing demand for enterprise-scale generative artificial intelligence," Ives wrote. "This is early innings on a sum-of-the-parts AI story just on the cusp on monetizing this massive green field AI opportunity."

Related:Palantir's stock extends rally after company announces latest deal

One of a number of companies gaining steam with investors amid the AI wave, Palantir has been attracting attention recently. Earlier this month, Mizuho Securities raised its Palantir price target to $14 from $8 but kept a neutral rating for the stock.

-James Rogers

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07-28-23 0959ET

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