Palantir (PLTR) is more than just a Department of Defense contractor; increasingly it’s working with financial institutions on cyber security and financial crime. Today the AI technology business announced the deployment of its specialized technological solutions within the retail banking division of French bank Societe Generale (SCGLY). SocGen will use Palantir’s Anti Financial Crime solutions, which use AI to help detect, prevent, and mitigate financial crime risks such as money laundering or fraud.
“With financial crime becoming ever more sophisticated, advanced data analytics and integration have become ever more crucial to effectively combating it. We are proud to be part of this critical challenge for one of Europe’s most important financial institutions,” said François Bohuon, General Manager of Palantir France & EMEA Executive.
PLTR Signalled Big Bank Deal in Earnings Call
Last month Palantir delivered a bullish outlook on its growth potential and talked up its work with financial instructions as part of that.
Chief technology officer Shyam Sankar said the company was working with a large multinational bank to automate core back-office processes. “What used to take five days now takes three minutes,” he said during the earnings call with analysts, explaining the kind of change it was driving.
PLTR Stocks Gains
PLTR stock rose in the premarket session on Wednesday on the announcement, while at the same time it got a lift as analysts at William Blair upgraded the shares to Market Perform from Underperform without a price target.
The firm cites valuation for the upgrade following the 33% “DOGE-driven selloff” in the shares from $125 to $84 over the past three weeks. Underscoring the volatility of the stock, PLTR is up 12% year-to-date despite a 16% plunged in the last month.
While Palantir’s valuation is “still frothy” with potential downside risk of over 40% on government contract delays, “there have been positive developments,” William Blair analyst Louie DiPalma told investors in a research note. He says if the market “reverts to risk-on mode,” the stock price may return to its prior peak.
Can PLTR Hit $100?
The average PLTR price target is $93.13, based on 18 Wall Street analysts offering 12-month price targets on the stock in the last three months, with a high forecast of $141.00 and a low forecast of $35.00.
