Palantir Technologies Inc. (PLTR) revealed that it has been chosen by the Federal Aviation Administration (FAA) to provide a data analytics tool to enhance the agency’s modernization objectives for aviation safety.
Shares of the software company that specializes in big data analytics, and serves public institutions, private enterprises, and the non-profit sector, have jumped 167% since its IPO in September 2020.
Per the terms of the one-year contract, PLTR will assist the FAA’s aircraft certification and continued operational safety activities, including the ongoing monitoring of the 737 MAX fleet’s return to service. The contract includes the option for two additional and is worth around $18.4 million.
Through Palantir Foundry’s central integration of data, FAA’s aerospace engineers and analysts will be able to efficiently and speedily monitor, analyze, visualize, and share aviation safety data, which is vital to determine if an incident presents a past or future safety risk.
Akash Jain, President at Palantir USG, commented, “We are proud to be partnering with the Federal Aviation Administration to support their critical safety mission.” (See PLTR stock chart on TipRanks)
Morgan Stanley analyst Keith Weiss recently maintained a Sell rating and the price target of $19 (25.1% downside potential) on the stock.
Weiss commented that though the company’s quarterly results were driven by strength in the government business, “improving commercial customer adds, accelerated sales hiring and building commercial pipelines look to be the building blocks for more durable growth ahead.” Trading at 22x Sales estimates for 2022, he believes that the growth is already priced into the current stock price.
Overall, the stock has a Hold consensus rating based on 2 Buys, 3 Holds, and 3 Sells. The average Palantir analyst price target of $22 implies 13.3% downside potential from current levels.
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