Palantir Technologies (PLTR) provides cybersecurity and related software and services to governments as well as private businesses. I am bullish on PLTR stock.
When Palantir stock started trading in September of 2020, many investors and commentators were enthused about the company. After all, Palantir is considered a go-to source of security-focused data analytics for a number of public and private entities.
Unfortunately, the hype phase didn’t last long, and gravity quickly took over as Palantir stock lost value in 2021, even while the major U.S. stock-market indexes posted substantial gains.
That’s disappointing, but as they say, last year’s laggards can become this year’s leaders. Palantir still has a trick or two up its sleeve, including a value-added partnership as well as significant expansion plans abroad.
Delivering Data for Modern Medicine
Despite the share-price decline, there’s no denying that Palantir finished 2021 with strength and ambition.
For instance, the company proved once again that it’s a favorite among government entities. Specifically, Palantir announced that the U.S. Army’s Program Executive Office for Enterprise Information Systems had reaffirmed their partnership with PLTR for the third consecutive year.
That contract will be worth $116.3 million for the year for Palantir. As significant as that collaboration will be for the company, however, there may be a more consequential one in the works.
In particular, Palantir is partnering with biomolecular condensates company Dewpoint Therapeutics to help power Dewpoint’s efforts to discover treatments and cures for challenging diseases.
Reportedly, Palantir will help Dewpoint Therapeutics to analyze lab data along with other data sources to identify new compounds and therapeutic approaches. Moreover, Dewpoint will use Palantir’s Foundry platform as its centralized knowledge repository to help contextualize experimental results and prioritize the most viable outcomes.
Clearly, life-changing medical outcomes could result from this collaboration. To quote Dewpoint CEO Ameet Nathwani, “Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs.”
Progress in Asia
Meanwhile, Palantir continues to demonstrate that its vision of enhanced data analytics and security has no geographic boundaries.
As evidence of this, the company signed a memorandum of understanding with HHI Group (also known as Hyundai Heavy Industries) to establish a big data platform and a joint venture.
Together, the two companies will develop a big data platform for HHI’s key affiliates related to shipbuilding and offshore engineering, energy, and industrial machinery. HHI Group will provide the affiliates’ process expertise and sales know-how, while Palantir will offer software and development personnel.
Among HHI Group’s affiliates is Hyundai Oilbank, which plans to build a big data platform at its plant in South Korea.
HHI Group might not be a famous name in the U.S., but as Palantir co-founder and CEO Alexander C. Karp pointed out, HHI is “a leader among the world’s industrial giants.”
In other words, Palantir’s partnership with HHI Group represents a significant entry point into the vast and potentially lucrative Asian big data market.
Wall Street’s Take
Turning to Wall Street, PLTR comes in as a Moderate Sell, based on one Buy, three Holds, and four Sell ratings. Despite this, the average Palantir price target is $20.71, implying 55.5% upside potential.
The Takeaway
From the U.S. military to modern medical applications in multiple world continents, you just never know where you’ll see Palantir’s leading-edge technology show up next.
It’s exciting to consider the possible future applications of Palantir’s big data and security solutions. Yet, investors don’t seem to appreciate the company’s progress at the moment.
This could change drastically in 2022 if market traders decide to bid the Palantir share price up. In time, we can hope, big data could lead to big profits for Palantir’s most patient investors.
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