Palantir Partners With Akin Gump For Legal Digital Service Platform

Palantir has teamed up with Akin Gump Strauss Hauer & Feld LLP to introduce a new legal digital service platform. Financial terms of the collaboration were not disclosed.

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The platform, Akin Gump’s RegSpot, will be powered by Palantir’s foundry software and allow Akin Gump’s clients to access solutions to meet their legal needs and compliance .

Palantir (PLTR) COO Shyam Sankar said, “Palantir has a long track record of deploying technology to solve the world’s hardest problems. We are excited for another example of how our customers are able to configure SaaS offerings for their own customers on Foundry at remarkable speed.”

Akin Gump’s RegSpot will leverage foundry’s security functionalities, auditing features, and low-code interfaces to enable end-users to have access to software-driven solutions to complex legal and compliance processes.

PLTR dropped 6.7% in midday trading in what appears to be some profit-taking as a chunk of the data software company’s shares became available for sale after a locktime period.

According to fourth quarter results released this week, Palantir recorded revenue of $322 million, up by 40% year-on-year. The company signed 21 contracts in 4Q with each contract worth $5 million or more. In FY20, average revenue per customer rose 41% to $7.9 million year-on-year. (See Palantir stock analysis on TipRanks)

On Feb. 17, Jefferies analyst Brent Thill reiterated a Buy with a price target of $40 on the stock. Thill noted that Palantir is a “highly unique story for long-term investors” given that “its growth sustainability at significant scale, and aggressive profitability ramp,” which puts the stock “in rarified air” among software companies.

The rest of the Street is cautiously bearish about the stock with a Moderate Sell consensus rating. That’s based on 2 analysts recommending a Buy, 1 analyst suggesting a Hold and 4 analysts a Sell. The average analyst price target of $25.83 implies 2.4% upside potential to current levels.

According to the TipRanks Smart Score system, PLTR gets a 2 out of 10 indicating that the stock is likely to underperform market expectations.