Friday, high-profile software stock Palantir Technologies (NASDAQ:PLTR) got a boost from a bank that decided to follow its fortunes. As this was a rather bullish start to coverage, it improved investor sentiment enough to push the company’s shares to a substantial increase of over 5% during this trading session.
It’s time to buy, says the tipster
Just after the market close on Thursday, Barclays‘ (NYSE: BCS) Anthony Valentini launched his follow-up to Palantir. He gave the specialty technology company an overweight (read: buy) recommendation and set his price target at $265 per share.
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Valentini’s decision was part of his bank’s broader deployment of coverage of defence, aerospace and related stocks. Palantir qualifies because it is very actively engaged with customers in these areas.
According to reports, the analyst believes that the United States is at the beginning of a new industrial revolution in these areas. As a popular provider of artificial intelligence (AI)-enhanced data analytics and other services to these businesses, Palantir stands to benefit from simply having them as customers. Management is also doing a good job expanding the customer base to both public and private sector clients.
Develop here and abroad
Palantir is far from a one-trick pony, with an admirably deep and broad client list. Recently, the company has acquired significant overseas customers, illustrating the considerable potential it has outside its home United States. We can easily imagine this snowball, so Palantir could very well see years of significant fundamental growth. Investors should note, however, that the stock is already quite expensive relative to its valuations.
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