At Italkstocks.com, we look for asymmetric opportunities—stocks that the market underestimates today but have the potential for exponential upside. Surf Air Mobility (NYSE: SRFM) is one of those stocks. While the company has been largely ignored, trading at a micro-cap valuation of under $100 million, we believe SRFM is positioned to be a category-defining player in advanced air mobility, and we’re long and strong.

Our conviction comes down to one word: SurfOS.

And one key partnership: Palantir (PLTR).

SurfOS: The AI-Powered Operating System for Regional Air Travel

Surf Air isn’t just an airline—it’s building the software backbone of the future of air mobility. SurfOS, developed in collaboration with Palantir Technologies (PLTR), is an AI-powered platform that replaces outdated flight management systems and brings big data, AI, and automation to the regional air market.

Here’s why this matters:

Today’s regional aviation market is fragmented and inefficient. Over 1,800 Part 135 operators (charter airlines) in the U.S. still rely on legacy software, spreadsheets, and manual booking systems. These inefficiencies lead to empty flights, wasted resources, and lost revenue.

SurfOS is changing that. It offers direct flight distribution, AI-driven pricing, automated charter brokerage, real-time aircraft availability tracking, and operations management tools. It’s a full-stack solution that can increase operator margins and improve flight utilization, all while cutting costs.

The market is enormous. NASA and McKinsey estimate that the regional and advanced air mobility market will hit $75–$115 billion by 2035. SurfOS has the potential to become the default operating system for this growing market.

This is not just a software play—it’s a platform play. SurfOS creates network effects: as more operators join, the system gets smarter, demand aggregation increases, and more flights get booked. This could be the Airbnb or Uber of regional aviation.

The Palantir (PLTR) Reality: A Game-Changing Partnership

One of the biggest reasons we’re bullish? Palantir isn’t just providing tech—it owns 7.1% of SRFM.

Palantir’s Foundry AI platform powers the data analytics engine behind SurfOS. Palantir doesn’t take equity stakes lightly—when it does, it’s a sign that its technology is deeply integrated into the company’s long-term strategy.

PLTR specializes in predictive analytics, AI-driven decision-making, and optimizing complex networks—all of which are crucial for SurfOS. The reality is this: if SurfOS succeeds, Palantir succeeds. This partnership gives SurfOS the credibility and technical firepower to dominate the space before competitors even get started.

The Market is Mispricing SRFM

The market is still valuing SRFM as a small airline, not as a software-driven mobility platform. That’s a mistake.

Currently, SRFM does about $100M in annual revenue—but even if they capture just a fraction of this market, we’re talking about multi-billion-dollar revenue potential.

SRFM Price Target Forecasts

Using three valuation methods—revenue multiples, earnings multiples, and a DCF analysis—we project the following price targets:

By 2028, SRFM could trade between $15 and $35 per share.

By 2030, the stock could hit $30 to $70 per share.

By 2032, we see a range of $60 to $120 per share.

By 2035, SRFM could exceed $150 per share.

At a $3–$4 stock price today, this is a potential 30x–50x return over the next 10 years.

Key Risks and Why We’re Still Bullish

Of course, no investment is without risk. Here are the key risks for SRFM:

Execution Risk – Can Surf Air sign up enough operators for SurfOS to gain traction? Early beta adoption (six launch operators) is a good sign, but scaling is critical.

Financial Risk – SRFM is still investing heavily, and profitability is a few years out. But once SurfOS scales, SaaS margins (70–80%) kick in.

Regulatory Risk – As an aviation company, Surf Air must comply with strict FAA regulations. The electrification side of the business (electric Cessna Caravans) may face delays.

Competitive Risk – Other aviation software providers exist (e.g., Portside, FL3XX), but none integrate B2B & B2C like SurfOS does.

Despite these risks, we believe SRFM has an asymmetric risk-reward setup.

Final Verdict: SRFM is a Strong Buy

We’re long and strong SRFM because:

SurfOS is a game-changer for regional air mobility.

Palantir is deeply involved, signaling massive AI potential.

The market opportunity is enormous—$100B+ TAM by 2035.

SRFM is currently undervalued as a software-driven platform.

Price targets suggest 30x+ upside over 10 years.

At current levels, SRFM is a generational buying opportunity for long-term investors. The market doesn’t see it yet—but we do.

We’re holding SRFM for the long haul.