Why Palantir Technologies Stock Is Rising

Palantir Technologies Inc PLTR shares are trading higher Tuesday following bullish analyst coverage from BofA Securities.

BofA Securities initiated coverage on Palantir with a Buy rating and announced a $13 price target, citing rapidly growing demand for AI-platforms in both commercial and government end-markets.

The analyst firm believes Palantir maintains a "dominant position" in the AI-powered software market. The company also offers differentiated solutions and has first mover advantages, which should support more than 30% annual revenue expansion and improving profits, according to BofA.

BofA believes Palantir's current valuation is leaving out its exposure to military intelligence. Rising geopolitical tensions have created an opportunity for Palantir’s national security solutions in the U.S. and allied countries. Palantir stands to benefit as the analyst firm expects U.S. and allies defense budgets to grow with increased focus on modernization and implementation of new technologies. 

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PLTR Price Action: Palantir has a 52-week high of $29.29 and a 52-week low of $6.44.

The stock was up 3.76% at $8.55 at press time, according to data from Benzinga Pro.

Photo: Cory Doctorow from Flickr.