The U.S. Army’s Program Manager for Intelligence Systems and Analytics has selected software firm Palantir Technologies (PLTR) to provide Intelligence data fabric and analytics platform for its Capability Drop 2 (CD-2) program.
Headquartered in Colorado, the company develops enterprise data platforms for organizations with complex and sensitive data environments. Palantir’s shares were up 7.3%, at the time of writing, in early trade on Wednesday.
The selection forms a part of the Army’s $823 million indefinite-delivery, indefinite-quantity (IDIQ) contract. Palantir had earlier collaborated with the Army on the “Test, Fix, Test” process, and it would now provide support through final testing and fielding. (See Palantir stock chart on TipRanks)
Under the contract, the company will provide Army Intelligence users across the world access to Intelligence data fabric and analytics solution, the Palantir Gotham Platform. This capability will field modern data integration, fusion, correlation and analytic capabilities to help the Army prepare for the next fight.
The Global Defense Lead at Palantir, Doug Philippone, said, “We look forward to the continued partnership with PEO IEW&S (Program Executive Officer for Intelligence, Electronic Warfare and Sensors) and the Army’s Intelligence Community in providing new and exciting technology that helps them in their modernization efforts.”
Two months ago, RBC Capital analyst Rishi Jaluria assumed coverage on the stock with a Hold rating and a price target of $25 (7.7% upside potential).
The analyst said, “We are positive on Palantir’s competitive moat, differentiated technology, and unique GTM.”
Overall, the stock has a Moderate Sell consensus rating based on 1 Buy, 2 Holds and 3 Sells. The average Palantir Technologies price target of $24.2 implies 4.3% upside potential. Shares have gained 134.4% over the past year.
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