What happened

Monday was a tough day for many stocks on the market. One that did relatively well was specialty tech company Palantir Technologies (PLTR -1.56%). Its shares fell only marginally on the day, performing much better than the S&P 500 index, which sank by 1.7%.

So what

Much of this was due to a bullish new analyst note from Monness, Crespi, Hardt & Company's Brian White. He's initiating coverage on Palantir stock with a buy at a $20 per-share price target. That level implies upside of nearly 60% on the stock's current level.

Young person at a desk using a PC and tablet computer simultaneously.

Image source: Getty Images.

White is encouraged by the presence Palantir has managed to build in both its customer spheres -- governmental and commercial. He's also heartened by the company's ability to expand its business and to do so consistently.

"Palantir has delivered strong revenue growth in recent years, albeit below the rates experienced by the fastest growing software companies in our coverage universe," he wrote in the note launching Monness's tracking of the stock.

"That said, Palantir is solidly profitable while most next-generation software companies struggle in this department," he added.

Now what

White brings up several excellent points about Palantir and its business and calls it a solid company with a bright future. Rather unfairly, in my view, the stock has been punished lately because it's been roped into the highly speculative tech stocks grouping many investors were selling out of.

It's also a relatively young company. Its initial public offering (IPO) was in late 2020, and investors are often more comfortable putting money into businesses with longer track records. These folks are still shying away from companies like this, so perhaps the continued softness in Palantir's stock price makes it an opportune buy at the moment.