Palantir Technologies' (PLTR) "unique" artificial intelligence software strategy will be a positive growth driver and it will continue to receive more agreements from the US government, Wedbush said in a Friday note.
The company recently won a $795 million US Army modification contract for Maven Smart System with expected completion in May 2029 and this agreement provides a further tailwind for Palantir with AI initiatives "across the US government accelerating with AI," analysts led by Daniel Ives wrote.
Palantir is in a "sweet spot" to benefit from a large chunk of US federal spending on AI throughout North America and Europe after the recent NATO collaboration, the analysts said.
It is also anticipated that Palantir will be one of the main beneficiaries and providers of the Golden Dome project, which intends to develop an air and missile defense shield against long-range strikes, the analysts mentioned.
Wedbush maintained its outperform rating and $140 price target on the company's stock.
Price: 122.45, Change: +0.16, Percent Change: +0.13
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