Palantir Technologies Inc. (NASDAQ:PLTR) has risen from the ashes of doubt to become one of the most talked-about names in the AI revolution.
Calling it an “AI All-Star,” Piper Sandler analyst Brent A. Bracelin sees this transformation as more than just a rebound, framing Palantir as a long-term winner in the evolving AI landscape.
The analyst initiated coverage on the stock with an Overweight rating and a price forecast of $170.
Also Read: This Palantir Technologies Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Friday
Bracelin highlights that Palantir has been closely followed for over five years, evolving from a highly sought-after late-stage private company to one that made its public debut via direct listing in September 2020.
The analyst recalls the challenging phase in late 2022, when investor confidence in Palantir’s ability to sustain 30%+ multi-year growth waned, pushing the stock to lows of around $6.
Since then, however, the company has staged a significant comeback, what Bracelin refers to as a “rise of the phoenix”, and is now regarded as a standout player in the AI space due to its accelerating growth momentum.
While the analyst acknowledges that Palantir’s valuation is steep and the investment carries a high degree of risk, Bracelin points out that its unique combination of strong growth and expanding margins could support a $24 billion annual revenue run rate by calendar year 2032, as the company captures market share across two addressable markets worth over $1 trillion each.
In Bracelin’s view, Palantir is well-positioned to emerge as a long-term AI winner.
However, given the stock’s history of high volatility, including more than a dozen pullbacks in the 20–29% range, he advises a patient, opportunistic approach by buying on dips to build positions over time.
Bracelin points out that recent data on unique visitor traffic across four prominent Defense Tech firms, Palantir, Anduril, Shield AI, and Axon, indicates that Palantir has seen its year-over-year visitor growth surpass triple digits for the first time in two years.
While he acknowledges that rising web traffic doesn’t necessarily translate directly into higher revenues, it does act as a useful proxy for gauging relative market interest compared to similar companies.
Among the four companies reviewed, only Palantir and Anduril are currently exhibiting triple-digit annual growth in unique visitors, underscoring their growing prominence in the Defense Tech landscape.
He also reflects on the distinctive and often unconventional trajectory that has defined Palantir’s evolution, most notably, its decision to sue (and ultimately win against) the U.S. Army, a rare move for a defense-oriented startup.
Bracelin emphasizes that Palantir’s journey to achieving a ~$4 billion revenue run-rate, coupled with free cash flow margins exceeding 40%, has spanned over two decades and has been marked by a unique blend of culture, leadership style, and strategic decisions.
Price Action: PLTR shares are trading higher by 2.55% to $158.78 at last check Friday.
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Image via Shutterstock
Latest Ratings for PLTR
|
Date |
Firm |
Action |
From |
To |
|---|---|---|---|---|
|
Mar 2022 |
Piper Sandler |
Initiates Coverage On |
Overweight |
|
|
Mar 2022 |
Morgan Stanley |
Upgrades |
Underweight |
Equal-Weight |
|
Feb 2022 |
Citigroup |
Maintains |
Sell |
View More Analyst Ratings for PLTR
View the Latest Analyst Ratings
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This article Why Palantir Is The ‘AI All-Star’ You Need To Watch originally appeared on Benzinga.com
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