William Blair sees three of Palantir’s four largest contracts as ‘in play’

William Blair analyst Kamil Mielczarek notes that Palantir shares traded up 21% following the company’s December-quarter earnings report and are up 43% year-to-date, but the analyst thinks "investors may curb their enthusiasm" given that the firm’s contract tracker suggests Palantir has an "abnormally high" six significant government contracts up for renewal over the next 15 months, including three of its four largest programs. The firm, which sees these contracts as "in play" given its view that Palantir faces legitimate competition from open-sourced solutions, now sees "both significant near-term and long-term downside" and keeps an Underperform rating on Palantir shares.