Wedbush analysts called Palantir (PLTR) one of their "top names to own in 2025."

Shares of Palantir jumped over 6% in early trading Monday, before paring back gains to finish 1.8% lower. The stock has added about 10% since the start of the year and morꦅe than tripled in value from a year ago, despite recent losses.

Shares of the Palantir lost one-third of their value since hitting a record high last month after the Washington Post reported the Trump administration directed Pentagon officials to 澳洲幸运5官方开奖结果体彩网:trim the U.S. defense budget by 8% annually for the next five years. The report raised worries Palantir's sales could take a hit, as the federal government represents a major client for👍 Palantir, accounting for over 40% of its revenue in the fourth quarter.

However, Wedbush analysts told clients Monday that they expect Palantir’s Artificial Intelligence Platform and the Trump administration's focus on efficiency could leave the company in a “sweet spot to benefit from a tidal wave of federal spending on AI,” even as other government contractors face spending cuts. “We believe Palantir could actually gain more deals and IT budget dollars across various government agencies,” the analysts added. 

Wedbush maintained an "outperform" rating and $120 price target for the stock, an over 40% premium to Monday's close at $83.42.

Several other analysts have voiced similar sentiments in recent weeks, 澳洲幸运5官方开奖结果体彩网:suggesting last month that Palantir could be better positioned than most to benefit from the Elon Musk-led Department of Government Efficiency’s 澳洲幸运5官方开奖结果体彩网:goals to cut spending.

UPDATE—March 3, 2025: This article has been updated since it was first published to reflect more recent share price values.