Palantir Technologies can weather plans for planned government budget cuts, Wedbush said on Monday.

Shares of the data-analytics firm briefly gained 6.5% to $90.48 in morning trading. But Palantir stock has tumbled 32% from its record closing high on Feb. 18 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 a gain of about 33% relative to the stock’s recent 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 artificial intelligence—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,” the analysts wrote.