By Mackenzie Tatananni

There's no shortage of bulls on Wall Street who believe Palantir Technologies is positioned to see momentous gains on the heels of a ramp in government spending. But some analysts are more enthusiastic than others.

Wedbush analysts let by Daniel Ives reiterated an Outperform rating and $140 price target on shares of the artificial-intelligence software company in a research note Friday. Out of 17 firms polled by FactSet, Wedbush included, the consensus target price comes out to $103.33.

Shares of Palantir were up 0.3% at $122.69 on Friday. The S&P 500 and tech-heavy Nasdaq Composite were down 0.8% and 1%, respectively.

Wedbush said Palantir remains one of the firm's "top names to own," with its whole portfolio set to gain "unprecedented traction" at both the federal and commercial levels.

"Palantir's unique AI software approach will be a positive growth catalyst as governments are to increase efficiency with more software/lower headcount," the analysts wrote.

It's no secret that federal spending is a huge boon to Palantir's business. But this relationship was recently thrust into the spotlight following the announcement of a $795 million modification to a U.S. Army contract for Palantir software licenses.

The Wedbush team sees even more opportunities for Palantir to gain. Earlier this week, the Trump administration laid out initial plans for a missile defense system dubbed the "Golden Dome." (The president signed an executive order commissioning such a system shortly into his second term).

"It is highly expected that Palantir will be one of the main providers and beneficiaries as the stepped-up AI investments now being seen under the Trump administration have and will continue to benefit Palantir within the Beltway," Wedbush wrote.

The company only continues to strengthen its foothold. Palantir was awarded a $30 million contract in mid-April by the U.S. Immigration and Customs Enforcement agency to build a surveillance platform.

Wedbush noted that the company's programs and contracts in the Defense Department are "safe and not at risk of getting cut" now that concerns about federal budget reductions have subsided.

The analysts also highlighted a recent deal with the North Atlantic Treaty Organization, which is expected to usher in a "tidal wave of federal spending on AI across North America and Europe." It is their stance that the company will become an "increasingly significant player" not just at home, but overseas.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 23, 2025 13:20 ET (17:20 GMT)

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