Palantir stock is misunderstood on Wall Street and can skyrocket

In a note on Tuesday, analysts identified that the variety of cellular phone users in 1980 was only 900,000 in 2000. The actual variety of cellular phone subscriptions that yr was over 100 million. These early forecasts also didn’t bear in mind the appearance of mobile apps and smart devices.

“We see Palantir’s (PLTR) capabilities, technology and future prospects facing a similar fundamental misunderstanding,” wrote BofA analysts led by Mariana Perez Mora. “The impending inclusion in the S&P 500 represents a turning point for institutional investors to rethink their ‘knowledge’ of PLTR.”

BofA reiterated its buy rating on Palantir shares and raised its price goal from $30 to $50. The latest goal represents an upside of 40.5 percent from the stock’s closing price on Friday. And that is after shares had already shot up last week following news that the corporate could be added to the S&P 500 later this month and have greater than doubled for the reason that starting of the yr.

A serious misconception on Wall Street is Palantir’s unconventional sales strategy, during which engineers play a key role. While investors say this approach limits scalability and profitability, BofA sees it otherwise.

“We believe this approach makes PLTR solutions significantly more relevant to users and gives PLTR greater pricing power,” the statement said. “Engineers get close to the customer’s mission and help shape the product to deliver real value.”

As Palantir continues so as to add more customers in the private and non-private sectors, BofA sees an enormous opportunity for the corporate to turn into the common data operating system for the U.S. government and enormous U.S. corporations.

Palantir is understood for its work in defense and intelligence, but can be expanding into the industrial sector.

On the occasion of Palantir’s inclusion within the S&P 500, CEO Alex Karp took a victory lap in a Video posted on TuesdayHe also pointed to Wall Street’s misconceptions in regards to the company, which developed and offered products a decade ahead of the competition, enabling entire corporations to make use of AI and enormous language models.

“It’s still so radical that people don’t quite understand it,” Karp said. “They don’t understand how we were able to flip a switch and achieve GAAP profitability. And how we went from what adults, professional managers and some analysts thought was a Frankenstein monster driven by a freak show leader – me – to a dynamic, clearly profitable company that deserves to be included in the S&P 500.”

Palantir has gone its own way and ignored popular opinion, he added, but additionally praised the retail investors who’ve maintained their trust in the corporate.

“Everyone in the company and around the world should celebrate the rebels’ victory,” he said.