Data analytics company, Palantir Technologies (NYSE: PLTR) spiked in morning trading on Friday after top-rated Wedbush analyst Daniel Ives initiated coverage on the stock with a Buy rating with a Street high price target of $25. The analyst’s price target implies an upside potential of 54.8% at current levels.
Ives is of the opinion that Palantir has as built an “unmatched AI fortress” and the company could play a key role in the AI revolution. The analyst commented, “Given the company’s extensive experience handling customer data, PLTR’s transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data.”
The analyst stated that PLTR’s “secret sauce” is that its analysis is driven by humans that use AI to create platforms and allows its customers to deploy the product, optimize the workflow and to address questions, and work closely with them.
Ives concluded, “This is early innings on a sum-of-the-parts AI story just on the cusp on monetizing this massive green field AI opportunity.”
Besides Ives, other Wall Street analysts, however, remain sidelined about PLTR stock with a Hold consensus rating based on two Buys, six Holds, and four Sells.