Palantir sees bullish views at Piper Sandler on growth prosp

Palantir sees bullish views at Piper Sandler on growth prospects

Piper Sandler raised the price target on Palantir Technologies (NASDAQ:PLTR) stock to $210 from $182, while maintaining its Overweight rating on the shares.

Analyst Clarke Jeffries said there is no argument that Palantirs valuation leaves no margin for error, particularly if any signs of moderating growth emerge.

However, the analyst noted that with tremendous visibility on future revenue (more than $7B of defined contract value plus an estimated nearly $4B of IDIQ contract value), accelerating triple digit growth in Commercial bookings year-to-date, and unparalleled wallet share opportunity across $1T of U.S. Defense Spending, Palantir has not reached peak growth, and thus they do not see a catalyst to halt current momentum.

The analysts believe the Defense sector is undergoing a profound shift, pivoting from large cost-intensive assets to agile, lower cost strategies enabled by software and unmanned systems.

We pose this scenario to investors - if 0.5% of Defense spending moved in the favor of Palantir, the companys overall gov. business could increase 5x still be 7x smaller than Lockheed Martin, said Jeffries.

The analysts added that they do not see Palantir as a secular beneficiary of the way organizations (both Federal and Commercial) must approach developing