This article was first published on GuruFocus.
Palantir Technologies (NASDAQ:PLTR) rose about 2% in pre-market trading Monday as Wedbush expressed optimism ahead of the company’s third-quarter results due after the closing bell.
Wedbush increased its price target from $200 to $230 and maintained an outperform rating on the stock.
The brokerage, led by analyst Daniel Ives, said it expects Palantir’s guidance and results to show continued progress as the company expands its artificial intelligence offerings to its commercial and government customers.
Analysts said Wall Street’s revenue estimate of about $1.09 billion appears achievable as Palantir’s artificial intelligence platform, known as AIP, remains a key driver of customer adoption and spending.
If momentum continues, Wedbush believes Palantir could explodes to a trillion-dollar valuation as AI spending increases.
Wedbush also highlighted strong demand signals for AIP across all industries, with faster sales cycles and more customers moving from pilot testing to broader deployments.
The company added that increased U.S. government spending on AI initiatives under the current administration could support the growth of Palantir’s public sector business.
Investors will be watching to see if the company provides increased visibility into business dynamics and use case expansion when it reports results later today.
