Palantir (NYSE: PLTR) was up more than 5% on Friday as enthusiasm around its AI efforts to swell. The company has long had a strong relationship with the Department of Defense but now has the potential for significant growth from commercial customers thanks to its Artificial Intelligence Platform, AIP. We analyze some near-term catalysts that could push Palantir’s share price north of $30.

3 Catalysts That Could Push Palantir Above $30 Per Share

Highlights from the discussion between 24/7 Wall Street Analysts Eric Bleeker and Austin Smith is below.

• Bank of America Securities recently issued a research note discussing Palantir's path to $30 per share. Obviously, this price is only slightly above where the company trades today, but the research highlights a few powerful catalysts that could drive shares in the month ahead.

$PLTR

BANK OF AMERICA REITERATES:

– BUY ✅

– $28 PRICE TARGET ✅

– TECHNICALS SHOW A PATH TO $30 ✅

– BELIEVES PALANTIR’S AI ADOPTION IS JUST BEGINNING ✅

Full research note⬇️ pic.twitter.com/QLsWs5UARS

— amit (@amitisinvesting) June 28, 2024

• Palantir's products are incredibly difficult to understand, which is a problem that has impacted the company's entire existence. 
• The easiest way to understand Palantir is that their software was built with a semantic framework that categorizes data that can then establish relationships between it, make predictions, and other more conventional business intelligence outcomes. 
• If you’re the Department of Defense, this is a God send. Think of all the audio and video the DoD might capture surveilling potential threats. The DoD never needed much of a sales pitch from Palantir, they just knew from the start how powerful the software was.
• So, it's not shocking the Department of Defense immediately became Palantir's number one customer. 
• Now, the sales pitch to Fortune 500 companies has been a lot trickier. These companies have a half dozen companies pitching them similar products and Palantir comes in with something that's more out of left field.
• Luckily for Palantir, the framework their systems create is ideally suited for what is needed to get data organized for training by an LLM. 
• And now every large company’s CEO is asking, "What’s our AI strategy with our own data?"
• So Palantir is at the top of the list as an option thanks to AIP, which is the AI Platform they’ve built. 
• Now, let’s focus back on what could drive Palantir to $30 per share and beyond.
• These catalysts are from a new Bank of America research note. In the note, they maintain a buy rating at $28 with a note saying technicals could push the stock above $30. 
• Bank of America highlights 3 key areas. 
  • First, the DoD shifting toward software and tech modernization. This should put more defense spending tailwinds at Palantir's back. 
  • Second, commercial momentum accelerating as the company should start seeing more conversions from Bootcamps it has been running with potential AI customers. 
  • Finally, a catalyst of Palantir potentially being added to the S&P 500. The next rebalance event is in September. This is interesting timing as Palantir should meet the criteria (specifically around profitability) to be included in the index. 
• Investors in the AI space will remember that S&P 500 inclusion had a huge impact on the share price of Super Micro Computer (Nasdaq: SMCI). Beyond the near-term upside of S&P 500 inclusion, there are also longer-term benefits like less volatility as the stock would be owned by more passive funds.
• Overall – I (24/7 Wall Street Analyst Eric Bleeker) own Palantir and think it’s one of the more high-upside stocks in the AI space.
• It’s high risk, high reward. The story around AI is going to take awhile, and if you’re an investor that’s the area to watch. Next time the company reports earnings zero in on commentary around Bootcamps and their AIP product. 

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