Palantir (PLTR) Pullback Creates Entry Point, William Blair Says

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks Gaining Attention on Wall Street. On February 2, William Blair analyst Louie DiPalma upgraded the stock to “Outperform,” citing buying opportunity after a 30% selloff.

The firm’s Dotted Line government tracker and its separate commercial tracker has indicated that Palantir’s momentum continues to build. The new administration “continues to build” while enterprises continue to add workflows.

This, the firm continued, has contributed to an “astounding” Rule-of-114 September quarter, and also a likely strong December quarter. It added that while Palantir’s valuation remains “frothy,” it appears more reasonable compared to recent venture rounds for AI ecosystem companies.

Despite Palantir’s momentum, shares have not been immune to the broader software sector selloff. The earnings day reaction is also likely to be volatile, said the firm, but it anticipates a positive move following earnings.

The firm further said that even if the stock does fall like they did last quarter, shares are likely to return to greater than $200 over the next twelve months driven by positive developments.  Meanwhile, there have been reduced concerns around government contract concentration under the current administration.

“We upgraded shares to Market Perform last March following the DOGE-inspired selloff at $84 per share as the risk/reward became more attractive under the new administration (upgrading to Market Perform on 33% pullback; Rich AI Pipeline Helps Offset Frothy Valuation). In our view, the recent selloff creates a buying opportunity for Palantir as a leader in the AI supply chain.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

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Disclosure: None. This article is originally published at Insider Monkey.