.September 10, 2024 Tuesday 02:04 PM

Bank of America raised Palantir’s price target to $50 per share, citing its recent inclusion in the S&P 500 as a pivotal moment. The bank reaffirmed its Buy rating on the stock, noting institutional investors are reassessing the company’s long-term growth potential.

Bank of America compares Palantir to the early days of mobile phones, suggesting it is positioned for massive expansion. Analysts highlight Palantir’s “Ontology” platform, which integrates data and automation for enhanced decision-making in machine learning, AI, and quantum computing.

Palantir’s unique sales strategy involves engineers collaborating directly with clients to develop tailored solutions, creating deeper relationships and boosting pricing power. The bank points to Palantir’s 35% operating profit margin as evidence of success in the competitive software market.

Bank of America believes Palantir’s business model and technological strengths position it for substantial growth in the future.