If one of the “Magnificent Seven” members gets kicked out, which company would replace it? Palantir Technologies (NYSE:PLTR) is as good a “Mag-7″ candidate as any. PLTR stock fully deserves an “A” grade because Palantir Technologies is a clear winner in the data analytics, cybersecurity and artificial intelligence markets.
Indeed, Palantir Technologies has embedded AI functionalities into several products. Since the AI gold rush is in full swing, Palantir stock is likely to move higher in the coming quarters, maybe even to $35 or more. Besides, as we’ll discuss in a moment, a new public-sector contract adds to the already compelling argument for investing in Palantir.
Palantir Technologies Scores a Titan-Sized Contract
There’s no denying it. Having the U.S. government as a regular client gives Palantir Technologies an immense advantage. After all, the government has practically unlimited spending authority.
That’s why many of Palantir Technologies’ public-sector contracts have large dollar amounts attached to them. A case in point is the $178.4 million contract that the Army Contracting Command – Aberdeen Proving Ground (ACC-APG) recently awarded to Palantir Technologies subsidiary Palantir USG, Inc.
With this agreement, Palantir Technologies will be tasked with developing and delivering the Tactical Intelligence Targeting Access Node ground station system. TITAN will provide the U.S. Army with deep-sensing capability, which will be enabled by AI and machine learning.
As Palantir USG President Akash Jain put it, Palantir Technologies is delivering “the Army’s first AI-defined vehicle.” It’s a historic moment in the making, and a win-win for the U.S. military and for Palantir.
Two Analyst Firms Raise Their Price Targets on PLTR Stock
Clearly, Palantir Technologies is effectively deploying AI technology in its products and services. Many investors and some experts on Wall Street recognize the potential for PLTR stock to move higher.
For example, Mizuho analysts recently raised their Palantir stock price target from $18 to $21. Yet, Mizuho will probably end up revising their price target higher, since Palantir Technologies shares traded for $23 and change in mid-March.
Meanwhile, Wedbush Securities analyst Dan Ives recently published a $35 price target for PLTR stock. Apparently, Ives sees great commercialization potential for Palantir’s Artificial Intelligence Platform (AIP):
Palantir with its flagship AIP platform and myriad customer bootcamps is in the sweet spot to monetize a tidal wave of enterprise spend now quickly hitting the shores of the tech sector.
That’s a reasonable assessment, and Ives’ $35 price target for Palantir stock seems attainable. The stock reached $35 in 2021, so don’t be surprised if it rallies, as the AI gold rush continues in 2024 and 2025.
PLTR Stock: A Good-as-Gold AI Play for 2024
Of course, there’s no way to guarantee that the Palantir Technologies will reach $35. Still, the bullish catalysts are in place and Palantir’s latest public-sector contract should convince any remaining skeptics.
As we’ve discovered, Palantir Technologies is making waves as a purveyor of AI-enhanced security and defense technology. It will be exciting to witness Palantir’s growth throughout 2024 and in the coming years. Therefore, we remain bullish on PLTR stock and we’re assigning it a high conviction “A” grade.
On the date of publication, Louis Navellier had a long position in PLTR. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
