Palantirs New Army Contract Could Boost Its Shares by 51 Percent
Palantir landed a new Army contract and analysts think it could send shares up 51 percent. The controversial data company keeps winning government business despite the criticism.
The contract involves Palantirs data analytics platform which the military uses for various intelligence and operational purposes. The exact details are classified because of course they are.
Barrons detailed the analyst projections and what drives them.
Palantir has always been polarizing. Privacy advocates hate it. Defense hawks love it. Investors are somewhere in between trying to figure out if the business model actually works.
Data analytics companies in the defense space operate differently than commercial tech firms. Government contracts are sticky and lucrative.
The 51 percent projection assumes the contract leads to follow-on work which it often does. Once youre embedded in military systems they dont switch vendors easily.
Alex Karp the CEO has cultivated a deliberately odd public persona while building a company that works closely with intelligence agencies. Its an unusual combination that somehow works.
Whether the stock actually hits those targets depends on execution and broader market conditions. Analyst projections are educated guesses not guarantees.
Contract announced 2021
