Palantir Technologies Inc (NYSE: PLTR) down more than 50% for the year is an impeccable opportunity to play the increase in defense budget, says Ron Epstein.
Palantir stock has a 50% upside
The Bank of America analyst assumed coverage of the stock with a “buy” rating on Tuesday and a price target of $13 a share that translates to a 50% upside from here. On CNBC’s “Closing Bell: Overtime”, he said:
Defense budget will come in at $850 billion this year. It’ll be close to a trillion in 2026. The big defense names reflect that, but it’s not been reflected in Palantir. So, Palantir is a great way to get at that kind of growth in defense budget.
Last month, the data analytics company reported weaker-than-expected results for its fiscal first quarter and gave disappointing guidance for the future.
Current stock price is attractive
According to Ron Epstein, the current stock price does not factor in “national security” that makes up roughly one-third of the revenue for Palantir Technologies Inc. He noted:
Data is the new bullet and Palantir is all about artificial intelligence and data organization. The stock at around $9.0 barely gives them credit for the defense piece. Or it prices in defense but doesn’t give them any credit for commercial.
In May, the Palo Alto-headquartered company partnered with Rubicon Technologies that aims to transform the waste and recycling industry. The bullish note saw PLTR close 5.0% up on Tuesday.
The post Palantir stock outlook: Bank of America sees upside to $13 a share appeared first on Invezz.
Source: https://invezz.com/news/2022/06/21/palantir-stock-outlook-bank-of-america-sees-upside-to-13-a-share/