Big data analytics and artificial intelligence (AI) company Palantir Technologies (PLTR) continues its winning streak this year after being granted FedRAMP High Authorization by the U.S. government. FedRAMP is a federal government program that seeks secure cloud services. With it, the government can standardize security and risk assessment for cloud technologies and federal agencies.
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The FedRAMP High Authorization granted to PLTR covers its Palantir Federal Cloud Service (PFCS) and its PFCS supporting services. This designation covers the company’s complete catalog of product offerings, allowing it to sell all of its services to the federal government.
Investors will note that this builds on Palantir Technologies’ current relationship with the U.S. government. The FedRAMP High Authorization is an upgrade over its prior FedRAMP Moderate and DoD IL5 and IL6 authorizations.
What This Means for PLTR Stock
The initial news of Palantir Technologies securing FedRAMP High Authorization sent PLTR shares 6.88% higher yesterday. That positive momentum continues on Wednesday, with the stock up 1.06% as of this writing. Investors will also notice that this builds on the company’s 313.28% increase year-to-date and 285.65% rise over the last 12 months.
With the FedRAMP High Authorization designation, Palantir Technologies is cleared to handle the government’s most sensitive unclassified information on its cloud platform. That could lead to more partnerships with the U.S. government, bringing more revenue to the software development company.
Is PLTR Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Palantir Technologies is Hold based on three Buy, seven Hold, and six Sell ratings over the last three months. That comes with an average price target of $38.73, a high of $75, and a low of $11. This represents a potential downside of 45.42% for PLTR shares.
