US business growth accelerates, “competitive moat” expands Bank of America raises Palantir (PLTR.US) target price to $75

The Zhitong Finance App learned that Bank of America published a research report reaffirming the Palantir (PLTR.US) “buy” rating and raising the software company's target price from 55 US dollars to 75 US dollars, citing the acceleration of US business growth and the continuous expansion of the “competitive moat.”

Analysts pointed out that Palantir has demonstrated its ability to digitize enterprises and battlefields from finance to missile production. “In a world where efficiency, innovation, safety, and speed are the most valuable assets, we see Palantir as the enabler and winner of this new era,” the analyst said.

The bank's analysts raised Palantir's government business growth rate from 24% to 29% over the next three years and pointed out that software has become a key asset in industrial production, enabling automation, data analysis, real-time monitoring, and process control. According to analysts, software accounts for 17% of non-residential private fixed investment in the US, compared to 11% in 2005.

Analysts believe Palantir will dominate as businesses turn to software and artificial intelligence to improve profit margins rather than through scaling up fixed assets. The complexity of the company's “Ontology” philosophy is invaluable to the operation of generative AI because it includes security, governance, and data robustness challenges.

Bank of America notes that even with a surge in new commercial customers, partners, and distribution channels, the company still has plenty of room to grow. Analysts raised the commercial business growth rate from 32% to 34% over the next three years.

Analysts believe that Palantir's penetration in government and commercial applications is still in its early stages. Incremental value-added use cases and enhanced interoperability are critical for continued penetration and upsell opportunities.

Additionally, analysts said that after moving the listing location to NASDAQ, Palantir is expected to meet the eligibility requirements for the Nasdaq 100 Index. Potential inclusion provided a catalyst for rising prices.