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.
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.
