Wedbush Securities reiterated an 'Outperform' rating on Palantir stock with a $35 price target.
The reaffirmation comes despite investor concerns over Palantir's investment in AI company Anthropic.
Analyst Dan Ives believes Palantir's core government and commercial businesses are strong enough to drive growth independently.
The report suggests the market is overemphasizing AI partnership risks while underestimating fundamental platform strengths.
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Wedbush Securities analyst Dan Ives reiterated his 'Outperform' rating on Palantir Technologies (PLTR) stock on February 25, 2025, despite growing market concerns about the company's significant investment in artificial intelligence firm Anthropic. The analyst maintained a $35 price target for the data analytics company's shares, expressing confidence that Palantir's core government and commercial businesses remain robust and will drive growth independent of the AI venture's near-term performance.
The reiteration comes amid a volatile period for AI-related stocks, with investors scrutinizing the valuations and long-term profitability of companies like Anthropic. Palantir, known for its Gotham and Foundry platforms, made a substantial strategic investment in Anthropic to bolster its AI capabilities, particularly in large language models. However, recent questions about Anthropic's path to monetization and competitive pressures have created headwinds for Palantir's stock, leading some investors to question the wisdom of the partnership.
Ives' analysis suggests that the market is overly focused on the Anthropic investment while underestimating Palantir's standalone fundamentals. He highlighted the company's continued contract wins with U.S. and allied government agencies, along with expanding commercial adoption in sectors like healthcare and manufacturing. The Wedbush report indicates that even if the Anthropic partnership faces challenges, Palantir's data integration and analytics platforms have sufficient demand to sustain growth, making the current stock price an attractive entry point for investors who believe in the long-term AI narrative.
Ultimately, the analyst's stance represents a vote of confidence in Palantir's management and strategic direction, separating the company's core value from the speculative aspects of its AI investments. This perspective is crucial for investors navigating a market where enthusiasm for artificial intelligence must be balanced with rigorous fundamental analysis of business models and revenue streams.
Wedbush Securities Inc. is a privately held financial services firm based in Los Angeles. As of April 2025, the firm had $5.7 billion under management with 10,099 clients.
# Anthropic PBC
**Anthropic PBC** is an American artificial intelligence (AI) safety and research company headquartered in San Francisco, California. Established as a public-benefit corporation, the organization focuses on the development of frontier artificial intelligence systems with a primary e...
Palantir Technologies Inc. is an American publicly traded company that develops data integration and analytics platforms enabling government agencies, militaries, and corporations to combine and analyze data from multiple sources. Its flagship products—Gotham (for intelligence and defense) and Found...
