Monness, Crespi, Hardt & Company analyst Brian White has started research coverage on Palantir (NYSE:) with a Buy rating and a $20.00 per share price target.

“Palantir has built out a strong presence across a broader scope of government organizations based in liberal democracies and demonstrated success with commercial organizations. Palantir, in contrast to other tech companies and societies around the globe is taking a path less traveled. Palantir has remained steadfast to its core values, fostering a distinct culture, and developing unique software,” White said in his initiation note.

The analyst believes Palantir is well-positioned as it attacks a “significant” market opportunity, estimated by the company at roughly $119 billion.

“Palantir has delivered strong revenue growth in recent years, albeit below the rates experienced by the fastest growing software companies in our coverage universe. That said, Palantir is solidly profitable while most next-generation software companies struggle in this department,” White added.

As shares trade at over 55% less than the September record high, the set price target indicates an upside of nearly 60% compared with the current market price for PLTR shares.

Palantir stock was trading at $12.69 as of the writing time (10:15 EST).

By Senad Karaahmetovic