Palantir Technologies Inc.’s (NYSE:PLTR) stock has already more than doubled in value by 2024. But Northland Capital Markets analyst Michael Latimore says the data analytics company still has room for growth.
Latimore has recently published a bullish $35 target price for Palantir. This suggests a 10% potential upside from current levels.
Palantir, he believes, is well-positioned to profit from the expansion of artificial intelligence use cases. This makes it a compelling purchase on any dips.
‘Palantir makes every company’s data great’
Latimore’s optimism stems from Palantir’s strategic emphasis on enterprise AI which he sees as the next major technology wave.
Palantir’s products go beyond automating data insights. They also automate decisions, making their technology valuable for businesses that want to leverage AI in order to increase efficiency and productivity.
Palantir currently generates around half of its revenue through government contracts. However, its enterprise business has seen a significant increase in sales this year.
Latimore said that “Palantir makes all companies’ data great and fuels great enterprise AI.”
This unique value proposition positions Palantir to be a key player on the rapidly expanding enterprise AI markets, which are expected to grow significantly over the next decade.
Palantir, despite its high growth potential, has not yet attracted income-focused investors as it does not pay a dividend.
Palantir is a compelling investment for those who are interested in the long term potential of AI.
How well does Palantir perform financially?
Palantir’s recent financial performance supports Latimore’s bullish outlook.
Early August, the company announced solid results for its second fiscal quarter and then raised its revenue guidance for the full year 2024.
Palantir expects to generate revenues between $2.74 and $2.75 Billion, up from the previous guidance of $2.69 Billion.
Analysts had predicted revenue of $2.70 Billion, highlighting Palantir’s ability to exceed expectations.
This improved outlook is a result of the company’s success in leveraging AI.
Statista predicts that the global AI industry will reach $1 trillion in the next 10 years. Palantir is well positioned to capitalize on the growth.
Latimore believes that Palantir’s stock can reach its $35 price target in the next 12 months if it trades at 22 times the company’s revenue.
Should you buy Palantir or not?
Latimore’s recommendation to purchase Palantir at a dip is based on its ability to deliver automated insight and decisions, which have become increasingly important in the evolving AI environment.
Palantir’s technology will be even more important to businesses in various industries as AI use cases continue expanding.
Palantir is a great opportunity for investors who want to get exposure to the growing enterprise AI market.
The stock’s current price may reflect significant gains, but its future growth potential–driven both by its government and enterprise segment–makes this stock a stock to consider on any price declines.
This post Analyst recommends Palantir stock at a dip as it ‘fuels enterprise AI’ will be updated as new information is released.
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