Palantir Technologies (NYSE:PLTR), a data analytics company, announced that it had received an extension of one year to its prior four-year contract for the U.S. Army’s Vantage data management program. This contract is worth $115.04 million, inclusive of options.
As part of the contract extension, Palantir will “continue to provide its open data and analytics platform through continuous delivery to provide new AI-enabled capabilities and open platform infrastructure that promotes the program’s evolution to the Army Data Platform vision.”
Following the news of the extension, top-rated Bank of America (NYSE:BAC) analyst Mariana Perez termed it as “unexpected,” as the contract was set to expire this week. The analyst added that the Defense Department prefers multi-vendor awards but acknowledged Palantir’s strong position as a key provider of data analytics services.
Perez has a Buy rating and a price target of $21 on PLTR, implying upside potential of 13.3% at current levels.
Is Palantir a Buy, Hold, or Sell?
Analysts remain sidelined on PLTR stock, with a Hold consensus rating based on five Buys and Sell each and four Holds. In the past year, PLTR stock has jumped by more than 100%, and the average PLTR stock price target of $14.45 implies downside potential of 20.6% at current levels. This suggests that PLTR is overvalued at current levels.
