Palantir Technologies (NYSE:PLTR) surged on Wednesday, as Piper Sandler started coverage on the data analytics software provider, noting the Russian invasion of Ukraine could accelerate adoption.
Analyst Weston Twigg, who started coverage with an overweight rating and a $15 price target, implying some 30% upside from current levels, noted that Palantir (PLTR) brings software, artificial intelligence and data into a "powerful" solution to help organizations make decisions to centrally track things like people, parts and information, while identifying patterns and creating frameworks to assess impact of certain decisions.
"We believe this type of technology will increasingly become standard among large organizations," Twigg wrote in a note to clients, while adding that the "Ukraine war could be an accelerator of adoption among U.S. and international government customers."
Palantir (PLTR) shares were up more than 7.5% to $11.87 in mid-day trading.
In addition, Twigg also noted that Palantir (PLTR) expects 30% compound annual growth rate in revenue through 2025, a goal that is achievable, considering it saw 41% growth in 2021, added more than 150 salespeople in 2021 and continued to see "rapid commercial growth."
The analyst also noted that Palantir (PLTR) is focusing on an "aggressive" global expansion, looking outside the U.S. to grow its sales force and customers, as it saw a 417% rise year-over-year in international commercial customers last year.
Earlier this week, Morgan Stanley upgraded Palantir (PLTR) as the investment firm said the company's fundamentals were getting better, citing better visibility on when U.S. federal contracts will get executed and when commercial investments will yield benefits.