Investing.com -- Wedbush Securities raised its price target for Palantir Technologies (NASDAQ:PLTR) to $90 per share in a note Thursday, representing a new Street high. The firm maintained an Outperform rating on the stock.
"We are raising our price target on Palantir from $75 to $90 as our recent checks and growing confidence in the company's AI strategy is key to the bull thesis on Palantir for 2025," the firm stated.
Wedbush believes Palantir has the potential to become a dominant force in the AI market, akin to industry giants like Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM).
"We believe Palantir has a path to become the next Oracle or Salesforce over the coming years," the note reads. "We see the Messi of AI as a core winner in the trillions of AI spend over the next few years."
The firm highlighted the growing traction of Palantir's Artificial Intelligence Platform (AIP), particularly within both the commercial and government sectors.
Wedbush said they believe boot camp deal conversions will be the key theme for Palantir into the next few quarters, with “the Street still underestimating core AIP growth in our view.”
“We are hearing from customers that bootcamps are providing unmatched value and AI insight leading to very quick sales cycles and shortening conversion timelines to deploy products, optimize workflows, and form use cases,” wrote Wedbush.
"AIP Generating More Traction with Improved AI Stack. PLTR continues to see unprecedented demand for AIP based on our recent checks across both commercial and government landscapes," the firm added.
The firm also emphasized the potential tailwinds for Palantir from the current administration. They believe the Trump Administration represents an additional tailwind for PLTR, noting AI initiatives within the US government, including the DoD accelerating as AI remains a strategic focus on the federal front.
The firm acknowledged a one-time impact of $120 million in stock-based compensation expense in the fourth quarter but emphasized that this will have no impact on pro forma earnings or cash flows.