Palantir Technologies Inc could actually be in line for a boost from government efforts to cut spending and ramp up efficiency, Wedbush analysts have predicted.
Despite recent pressure on its share price, analysts noted the software firm’s “value proposition” could see it gain more deals as Trump and Musk tighten the purse strings.
“Palantir is so well positioned for this new disciplined spending environment at the Pentagon and this will ultimately be a positive growth catalyst,” Wedbush said.
“We also believe Palantir is attached to many programs [and] contracts in the Department of Defence that are safe and not at risk of getting cut in this new spending climate.”
Stepped-up artificial intelligence investment, as other areas of IT budgets were trimmed, should see Palantir benefit, following interest already in the likes of its cloud services.
“Its artificial intelligence platform product moat is unmatched in our view,” Wedbush added.
“We believe Palantir could be a trillion market cap over the coming years and shaping up to be the next Oracle or Salesforce as the AI revolution plays out.”
An ‘outperform’ rating was reiterated, alongside a $120 share price target.
Shares were trading up 4% at $88.29 on Monday.