PLTR Stock Rises Premarket – This Analyst Called Palantir A ‘Gift’ For Investors Ahead of Independence Day

DA Davidson upgraded Palantir’s rating to ‘Buy’ from ‘Neutral’ and hiked the price target to $175 from $165, according to TheFly.

• DA Davidson argued that Palantir has developed itself in such a way that customers will use Palantir ‘as a way to orchestrate AI models’. 
• The firm said that Palantir has ‘grown into its valuation’ as profits have risen significantly.
• Earlier this week, Palantir announced a deal with Nvidia to provide mission-specific sovereign AI for the U.S. government and critical infrastructure operators.

Shares of Palantir (PLTR) drew investor attention premarket on Thursday after DA Davidson called the stock a ‘gift’ for investors ahead of the United States’ 250th independence day.

DA Davidson upgraded Palantir’s rating to ‘Buy’ from ‘Neutral’ and hiked the stock’s price target to $175 from $165, according to TheFly. This represents a 39% upside potential to the stock's closing price on Wednesday. 

At the time of writing, PLTR Stock was up over 3% premarket on Thursday.

DA Davidson Says PLTR Stock Has Grown Into Its Valuation

The firm said that Palantir has ‘grown into its valuation’ as profits have risen significantly. DA Davidson believes that the company has many competitive advantages over other firms from the software industry that are coming into the picture due to AI. 

DA Davidson also argued that the company has developed itself in such a way that customers will use Palantir ‘as a way to orchestrate AI models’. Palantir’s ability to swap AI models beneath their solutions, has taken the perceived threat of the notion that customers would head towards Anthropic and OpenAI to solve their biggest issues, out of the equation.

Of the 32 analysts on Koyfin, 20 rate the stock ‘Buy’ or higher, ten recommend ‘Hold’ rating, while two recommend ‘Sell‘ or higher.

PLTR CEO Karp Flags Lack Of Customer IP Protection Measures

On Wednesday, CEO Alex Karp lauded Palantir’s latest partnership with NVIDIA Corp. (NVDA) to provide secure AI offerings to U.S. government bodies, enterprises, and allies across the world.

On a CNBC interview, Karp also argued that the frontier AI model developers OpenAI and Anthropic are short of measures that safeguards intellectual property of their clients, 

“The basic view of enterprises in this country... I'm going to basically chillax and waste my time with tokens, I'm going to get no value and they're going to get my IP,” Karp said.

PLTR - NVDA Deal

Earlier this week, Palantir announced a deal with Nvidia in which the company said it would integrate Nvidia’s Nemotron open AI models into its new intelligent engine to provide mission-specific sovereign AI for the U.S. government and critical infrastructure operators.

The firm noted that its platform makes sure that government agencies retain ownership of the resulting model weights, customize their data on Nemotron models and improve performance with the feedback through their own infrastructure. 

What Retail Thinks Of PLTR

On Stocktwits, retail sentiment surrounding the stock has remained ‘bullish’ amid ‘high’ message volumes over the past 24 hours.

PLTR stock has declined by more than 25% so far this year.

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