Data analytics company Palantir Technologies (NYSE:PLTR) gained in pre-market trading after announcing a $178.4 million contract win from the U.S. Army for its Tactical Intelligence Targeting Access Node (TITAN) project.
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TITAN is the U.S. Army’s ground station system powered by artificial intelligence and machine learning technology. As a part of this contract, PLTR will develop 10 TITAN prototypes, including five Advanced and five Basic variants. These prototypes will provide actionable targeting data for improved mission command and long-range precision fires.
Palantir’s partners on this project include Northrop Grumman (NYSE:NOC), Anduril Industries, L3Harris Technologies (NYSE:LHX), Pacific Defense, Sierra Nevada Corp., Strategic Technology Consulting, and World Wide Technology.
Is Palantir a Buy, Hold, or Sell?
William Blair analyst Louie DiPalma had indicated in a research note on Tuesday that PLTR was a “heavy favorite” to win the contract. DiPalma estimated that this was PLTR’s fourth-largest contract by yearly revenue. Nevertheless, the analyst is bearish on Palantir, with a Sell rating.
Overall, analysts remain sidelined about PLTR stock with a Hold consensus rating based on two Buys, six Holds, and five Sells. PLTR stock has skyrocketed by more than 100% over the past year, and the average PLTR price target of $18.55 implies a downside potential of 22.1% at current levels.
