Palantir . techniques(PLTR) Prowess in artificial intelligence and a focus on national security bodes well for the enterprise software maker despite heavy selling this year, Bank of America says. PLTR stock rose on Tuesday.
Palantir stock rose 5.7% to close at 8.71 on stock market today.
Bank of America analyst Mariana Mora began covering PLTR shares with a buy rating and price target of 13.
“We see Palantir benefiting from the rapidly growing demand for AI platforms in both commercial and government end markets,” Mora said in a note to clients. “Palantir’s dominant position in the AI-enabled software market, differentiated end-to-end, highly secure solutions and first-mover advantages should support an annual revenue increase of over 30% and a mid-term profit improvement.”
PLTR stock is down 55% for 2022
Meanwhile, Palantir stock is down nearly 55% in 2022 as of the market close on Friday. software standard, and iShares Expanded Tech-Software ETF (IGV), by 34% in 2022.
Software growth stocks that traded at the highest multiples of future returns, such as Palantir, were the hardest hit.
“Year-to-date, Palantir continues to decline, in line with its software peer group, as rising inflation and interest rate concerns weigh on high-volume stocks,” Mora said.
She added, “We believe that PLTR stockpiles have not benefited from the recent defense reclassification despite the significant exposure to US national security. We expect the defense budgets of the United States and its allies to grow with an increased focus on modernization. Data is a strategic asset and national security agencies have to ensure that They run it securely to better defend against peer threats like Russia or China.”
Palantir is trying to grow a business base
Palantir sells data analysis software primarily to US government agencies. In addition, Palantir programs are also used for intelligence gathering, counter-terrorism and military purposes.
The Denver-based company aims to grow its business client base by expanding into the healthcare, energy and manufacturing sectors.
With the aim of promoting business revenue growth, Palantir is investing in special purpose acquisition companies. SPACs are raising money in an initial public offering for the purpose of acquisition.
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