Palantir AI capability helps secures TITAN win over RTX, says Jefferies

Jefferies analyst Sheila Kahyaoglu notes that the U.S. Army has officially awarded Palantir (PLTR) $178.4M to develop and produce 10 Tactical Intelligence Targeting Access Nodes, or “TITANs,” which are ground stations used to connect Army forces to space, air, and terrestrial sensors, which then relay targeting data back to the field. Palantir beat out RTX (RTX) in the bid after both companies were previously selected to progress through a period of design and prototyping, notes the analyst, who adds that Palantir, as the primary software provider on the program, has a diverse partnership base for the hardware that includes Northrop Grumman (NOC), L3Harris (LHX), Anduril Industries, Pacific Defense, Sierra Nevada Corporation and others as subcontractors. Palantir differentiated itself through the integration of artificial intelligence and machine learning on its modular platform to enable smoother, simpler operation for soldiers on the ground, says the analyst, who keeps a Hold rating and $100 price target on RTX shares.