Palantir Technologies Inc. (PLTR), a software company that specializes in big data analytics, recently revealed that it has bagged a contract of $43 million from the Space Systems Command’s Cross-Mission Ground & Communications Enterprise (ECX). Following the news, shares of the company gained 1.6% on Thursday.
Implications of the Contract
This contract is in addition to the previous contracts awarded to Palantir from April and August of this year. The total face value of the contract is $91.5 million.
Palantir platform, also known as Warp Core, is being utilized to make decisions from large volumes of data in support of these missions.
Management Commentary
The Global Defense Lead at Palantir Technologies, Doug Philippone, said, "The threats to our nation in and through the space domain are very real as we’ve seen in recent weeks, we must continue to advance our Nation’s Space Domain Awareness capabilities. We’re very proud to have consistently earned the confidence of this innovative organization and to continue our partnership."
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Price Target
Recently, Credit Suisse analyst Philip Winslow initiated coverage on the stock with a Hold rating. The analyst’s price target of $25, implies upside potential of 27% from current levels.
According to the analyst, the company’s differentiated product offerings to organisations gives it a strong footing. However, the company’s reliance on only a few large customers can be a cause of concern for the company.
Consensus among analysts is a Moderate Sell based on 1 Buy, 3 Holds and 4 Sells. The average Palantir price target of $23.14 implies upside potential of 17.5% from current levels. Shares have declined 18.1% over the past year.
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