Shares of Palantir gained 9.8% on Monday after the company announced that the US Army has decided to execute the second year of the pre-existing partnership for the Army Vantage program. The total deal value is $113.8 million.
Palantir (PLTR) said that the original agreement was signed in December 2019 for $458 million to develop the Army Vantage, which is “a comprehensive data analytics platform to facilitate data-driven decision making.” The contract included a base year and three option years. The big data analytics company was awarded $110 million at the time for the base year.
According to Palantir, Vantage “provides a central operating system that enhances readiness and offers near real-time visibility and access to disparate Army data sources on an integrated data platform. The Palantir platform enables organizations to make better use of the data they have by breaking down silos and offering a single operating picture.” (See PLTR stock analysis on TipRanks)
Last week, Credit Suisse analyst Brad Zelnick downgraded PLTR to Sell from Hold, citing its high valuation. Meanwhile, the analyst raised the stock’s price target to $17 (40.4% downside potential) from $13.
Overall, the Street is sidelined on the stock. The Hold analyst consensus is based on 3 Holds, 1 Buy and 2 Sells. The average price target stands at $14.50 and implies downside potential of about 49.1% to current levels. Shares have skyrocketed 200% since its US stock exchange listing on Sep. 30.
Related News:
Palantir Pops 21% On Report Of $44M FDA Deal; Street Sees 52% Downside
Palantir Nabs Mission Command Contract With US Army; Street Says Hold
Lockheed Martin Snaps Up Aerojet Rocketdyne For $4.4B; Street Sees 17% Upside
