Dan Ives, a widely respected analyst at investment bank Wedbush, started coverage of Palantir (NYSE:PLTR) stock yesterday with a $25 price target and an “outperform” rating. The analyst thinks that the company is “on the golden track to success.”
PLTR stock is up about 7.5% in early morning trading today.
Why Ives Is So Bullish on PLTR Stock
Proclaiming that Palantir has launched an “unmatched… AI fortress,” Ives believes that Palantir will be a prime beneficiary of the proliferation of the technology.
According to the analyst, the company will be able to parlay its experience with handling information to create and sell “AI solutions powered by high-quality data.” Ives also pointed out that the firm has a great deal of experience with enabling its clients to combine artificial intelligence and human intelligence in order to obtain information.
Finally, Ives contends that Palantir is just scratching the surface of the opportunity that the AI revolution has handed it.
What Investors Should Be Watching Going Forward
In an effort to ascertain the extent to which PLTR is indeed benefiting from the proliferation of AI, investors should watch Palantir’s press releases and, of course, its quarterly financial results.
In a recent column, I noted that I had seen no evidence of Palantir investing a significant amount of funds in developing AI before 2023. Additionally, I pointed out “that, despite the fact that PLTR was launched 20 years ago, it’s barely profitable.”
Given these points, it’s very important for the owners of PLTR stock and those thinking of taking a bullish position in it to determine whether the firm is indeed becoming a leader in AI. Additionally, they should try to see if the firm’s foray into AI will meaningfully boost its profitability going forward.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
