Palantir Technologies (NYSE: PLTR) continues to captivate the stock market, with Bank of America stepping in to raise its price target from $30 to an eye-popping $50.
And they are doubling down with their bullish stance, reiterating their “Buy” rating. The analyst in question? Mariana Perez, the stock market expert who’s been tracking Palantir since its stock was priced at $6, and she’s pulling out some serious historical context to make her case.
Perez made a sharp comparison to a 1980 blunder, when AT&T hired a consultancy to estimate the future market size of cell phones by the year 2000. Their prediction? A modest 900,000 users. The reality? Over 100 million. Not only that, but those early projections didn’t come close to envisioning the digital world we live in today—apps, streaming, smart devices, and even the rise of the first trillion-dollar public companies.
“We view Palantir’s (PLTR) capabilities, technology, and path forward facing a similar fundamental misunderstanding,” Perez stated, setting the stage for what she sees as a significant upside.
According to her, the market is grossly underestimating the potential of Palantir, much like how the early cell phone predictions missed the boat entirely.
But that’s not all. Palantir’s upcoming inclusion in the S&P 500 index could be a game-changer. Perez believes this will serve as a “watershed moment for institutional investors to revisit what they ‘know’ about PLTR.”
Palantir to be included in the S&P 500 on September 23
With Palantir now a serious contender, big investors may soon be reevaluating their positions—and that means potential upward momentum for the stock.
On Monday, September 9, Palantir closed at $34.60, a strong gain of $4.26 (+14.04%) for the day. Pre-market trading on Tuesday showed only a slight dip, hovering around $34.50. The momentum is there, and Palantir is continuing to challenge skeptics.
PLTR stock 5-day chart. Source: Finbold
Palantir has often been criticized for its unconventional sales strategy, where engineers play an integral role in securing deals. Many have questioned whether this approach is sustainable, but Bank of America sees this as a secret weapon.
Perez notes that the bond between engineers and the sales team is a key part of Palantir’s pricing strategy, and it’s this very connection that gives Palantir an edge over traditional software companies.
The future may hold a $50 stock price for Palantir, and if Mariana Perez is right, we might be looking at a company that, much like the early mobile industry, could completely disrupt how we understand the potential of data analytics today.
In a market full of noise, Palantir so far is proving that it’s a stock worth watching, PLTR shares are up 108% since the start of 2024.
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