Palantir Technologies Inc. (NYSE:PLTR) has announced plans to collaborate with Hyundai Heavy Industries (HHI) Group to develop a big data platform for HHI’s core businesses, including shipbuilding and offshore engineering. Shares of the company declined 6.7% on Wednesday to close at $16.96.
The companies signed a memorandum of understanding on January 4 to establish the big data platform and a joint venture. As per the agreement, the platform will be built jointly, where HHI Group will provide the affiliates’ process expertise and sales know-how while Palantir will offer software and development manpower.
After building the big data platform for each affiliate, the companies will create a joint venture specializing in the development and sale of big data platform services.
Notably, energy affiliates like Hyundai Oilbank also seek to adopt the big data platform at its plant in Daesan, South Chungcheong Province, South Korea. The adoption is expected to maximize process efficiency by integrating more than 100 production management systems into one.
The Co-founder and CEO of Palantir, Alexander C. Karp, said, “We are deeply grateful for the opportunity to partner with a company that is not only a leader among the world’s industrial giants but one whose continued growth and success are critical to our collective welfare and security.”
“We expect that this partnership with Palantir Technologies will substantially improve the competitiveness of core businesses of the Group. It will be an important turning point in innovation of organizational culture that changes the way we work using data,” said, Kisun Chung, the CEO of Hyundai Heavy Industries.
Based on 1 Buy, 3 Holds and 4 Sells, the stock has a Moderate Sell consensus rating. The Palantir stock price prediction of $23.14 implies 36.4% upside potential from current levels. Shares have declined 32.2% over the past year.
Increased Hedge Fund Trading
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Palantir is currently Very Positive, as some of the top hedge funds that were active in the last quarter increased their cumulative holdings by 6.6 million shares.
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