Palantir estimates already reflect U.K. contract win, says William Blair

William Blair believes the 2024 consensus revenue estimate of $2.6B for Palantir Technologies (PLTR) already includes a full contribution from the expected GBP 480M, 7-year U.K. NHS Federated Data Platform contract that was expected to be awarded on February 28. Palantir shares traded up in the days leading up to February 28 because the company has been repeatedly listed by the media and privacy advocates as the front-runner to win this heavily publicized contract, the analyst tells investors in a research note. Bloomberg seemingly confirmed this consensus speculation by reporting Tuesday night that the U.K. government plans to award the contract to Palantir later this month, the firm says. Even with this potential win, Blair continues to see “significant downside” to Palantir shares over the next year because of intensifying competition from Amazon (AMZN, Microsoft (MSFT), Databricks, and others. It keeps an Underperform rating on the shares.