Emily Dattilo
Palantir Technologies can weather plans for planned government budget cuts, Wedbush argued on Monday.
Shares of the data-analytics firm gained 4.2% to $88.46 in Monday premarket trading. However, from its record closing high on Feb. 18, Palantir stock has tumbled 32% through Friday's close, according to Dow Jones Market Data.
Analysts led by Daniel Ives, who rates Palantir stock at Outperform with a price target of $120, offered insight on that decline. The price target implies about 36% upside to the recent premarket trading price.
"PLTR stock has been under pressure the last few weeks after the Trump administration announced a new five-year plan that would cut defense spending by 8% annually (about $290 billion) to reshape military end-strength and readiness over the coming years," the analysts wrote.
That may seem concerning, but the team isn't worried.
Wedbush believes Palantir's unique software approach -- think AI -- will actually allow the company to snap up more information-technology budget dollars at the Pentagon.
"Palantir remains one of our top names to own in 2025 and we believe this recent selloff represents another opportunity with PLTR generating unprecedented traction across both federal and commercial [business] for its entire portfolio," analysts wrote.
Write to Emily Dattilo at emily.dattilo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 03, 2025 09:11 ET (14:11 GMT)
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