Palantir Technologies Inc. (NYSE:PLTR), while being controversial, has set its sights on achievable growth targets, according to an analyst at Piper Sandler.
The Palantir Analyst: Weston Twigg initiated coverage of Palantir shares with an Overweight rating and $15 price target, suggesting roughly 38% upside from current levels.
The Palantir Thesis: Palantir leverages data across traditional silos to centrally track things, identify patterns and create decision frameworks to assess the impact of operational decisions, Twigg said in a note.
This technology of combining software, AI and data into powerful IT solutions will increasingly become standard among large organizations, the analyst said.
The company's forecast of 30% or more annual revenue growth through 2025 is achievable, Twigg indicated. Recent strong traction, massive and ongoing sales expansion and rapid commercial growth vouch for the fact, he added.
Related Link: Palantir Invests In Geospatial Intelligence Provider BlackSky: What You Need To Know
After pursuing an aggressive U.S. expansion in 2021, the company has now shifted its focus to international commercial expansion, the analyst noted.
With the stock dropping about 72% from the Jan. 2021 peak of $39, the valuation of Palantir stock has become more reasonable, Twigg said. The company's revenue growth and adjusted free cash flow remain compelling, he added.
"We view PLTR as a high-growth company with a rapidly expanding customer base," Twigg said.
Despite the controversies, the company's high growth will likely continue, he added.
PLTR Price Action: In premarket trading Wednesday, Palantir shares were rallying 4.08% to $11.49.
Also Read: Cathie Wood Further Trims Down Palantir Stake As It Nears Exit From The Stock
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