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Palantir Technologies (PLTR, Financials) rose 3.6% to $87.99 in premarket trading Monday after Wedbush Securities reiterated its Outperform rating, citing potential gains in government contracts and IT budget allocations.
Based on recent channel checks in Washington, D.C., the company's perspective points that Palantir would gain from more Pentagon investment on artificial intelligence-driven technologies.
Wedbush's analysts underlined how well Palantir aligned with the efficiency-driven projects of the U.S. Department of Defense. Along with any legislative changes impacted by former President Donald Trump and Tesla CEO Elon Musk, the business's involvement in important military projects might help to sustain contract expansion, the company observed.
Wedbush argues that despite a 33% drop over the previous two weeks attributable to U.S. military Secretary Pete Hegseth's projected 8% yearly military budget decrease for the next five years, Palantir is positioned to grab a bigger portion of IT contracts because to its AI capabilities.
Citing confidence in Palantir's ingrained involvement in high-priority military programsless likely to be subject to budget cutsthe business set a $120 price objective for the company.
This article first appeared on GuruFocus.