Bank of America Rates Palantir A Buy

Bank of America (BOA) thinks that
Palantir Technologies’ prowess in artificial intelligence and national security focus augurs well for the enterprise software maker despite this year’s sell-off.

Palantir stock rose 5.5% to 8.69 in morning trading on the stock market today.

BofA analyst Mariana Mora initiated coverage of PLTR stock with a buy rating and price target of 13.

Meanwhile, Palantir stock had dived nearly 55% in 2022 as of Friday’s market close.

A software benchmark, the iShares Expanded Tech-Software ETF (IGV), has contracted 34% in 2022.

Palantir sells data analytics software primarily to U.S. government agencies. Palantir’s software is also used for intelligence gathering, counterterrorism and military purposes.

The Denver-based company has been aiming to grow its commercial customer base by expanding into the health care, energy and manufacturing sectors.

Aiming to boost commercial revenue growth, Palantir has been investing in special purpose acquisition companies. SPACs raise money in an initial public offering with the purpose of making acquisitions.