Palantir Technologies (PLTR) has expanded its strategic partnership with the U.S. Space Force and U.S. Air Force, proving its ability to offer cutting-edge technologies. As part of the new deal, the company will provide software for powering advanced critical missions. Palantir is a software company specializing in big data analytics.
Additionally, Palantir will use its Data-as-a-Service (DaaS) platform to support the Space Command and Control program. The company’s solutions will also provide senior leadership at the Air Force with an analytics platform that merges data sources from across the Service. The total value of the contract is $32.5 million.
“Palantir’s technology and framework has truly accelerated our ability to remove data stovepipes throughout the community and create actionable knowledge,” said Col. Jennifer Krolikowski, Senior Materiel Leader for Space C2 at the Air Force Space and Missile Systems Center.
Palantir boasts of a long tradition of working with the armed forces. In 2020, it worked with the Space Force and provided data support for the space command and control modernization program. (See Palantir stock analysis on TipRanks)
Goldman Sachs analyst Christopher Merwin has reiterated a Buy rating on Palantir in the wake of the company’s reporting 49% revenue growth year-over-year in Q1. According to the analyst, the impressive first quarter was due to strong U.S. business even as headwinds lingered on the international scene.
Merwin stated, “We were encouraged to see that the commercial business added 11 new customers in the quarter, as Palantir’s efforts to broaden distribution for its Foundry platform are already paying off. As the company adds more GSI partners and continues to modularize Foundry, we expect to see a sustainably higher pace of customer additions going forward.”
However, the analyst has cut his stock price target to $30 from $34 due to multiple compression in comparable companies. That price target implies 41.38% upside potential to current levels.
Consensus among analysts on Wall Street is a Hold based on 2 Buy, 3 Hold, and 4 Sell ratings. The average analyst price target of $21.75 implies 2.50% upside potential to current levels.
PLTR scores 7 out of 10 on TipRanks’ Smart Score rating system, implying its performance is likely to align with market expectations.