Shares of Palantir Technologies Inc. (NYSE: PLTR) surged by over 10% on Friday after Dan Ives, a Wedbush technology analyst, initiated coverage of the AI software company with an Outperform rating, setting a target price of $25.
Ives firmly believes that Palantir is strategically poised to seize a significant market share in the commercial and government analytics software markets. He also said the company is “the Messi of AI on the golden track to success.”
This bullish sentiment from Wedbush Securities’ Ives builds upon his earlier forecast of an $800 billion opportunity in the AI industry, providing a “long runway of growth ahead” reminiscent of the Internet boom in the mid-1990s.
Palantir’s journey has been nothing short of riveting. The stock sent shockwaves across the market in 2020, soaring to record heights following its initial public offering. A meteoric climb of 344% from its September 2020 low to a peak near $45 in January 2021 made it the talk of the town among speculators. However, a subsequent 85% retreat caught many investors off-guard.
But this year has brought a remarkable resurgence, with the company’s shares witnessing a breathtaking 139% rally since May 5. The renewed interest in companies focused on artificial intelligence solutions and a significant short position by overconfident short sellers betting against Palantir’s resurgence has contributed to this rip-roaring rally.
As of press time, PLTR stock is trading at $17.81, up 10.28% compared to the last trading session.