Palantir Technologies wins $ 89.9 million contract; Share gain

Palantir Technologies has been awarded a $ 89.9 million contract from the National Nuclear Security Administration (NNSA) for five years. Shares of the software company closed 1.6% higher on Monday.

These include the company’s first contract with the NNSA.

According to the contract, Palantir Technologies (PLTR) will serve as a platform for the NNSA’s SAFER (Safety Analytics, Forecasting and Evaluation Reporting) project. SAFER is the proposed platform that will integrate the data and allow the NNSA to measure the health of the organization’s safety programs. As a result, NNSA staff will be able to track, track trends, query and analyze security measures at various sites across the country.

Palantir President of the US Government Akash Jain said, “Our work with NNSA illustrates Palantir’s mission to deliver software to the world’s most important institutions to support their most critical work.”

Earlier on the 4Q conference call, Palantir said its average revenue per user increased 41% year-over-year to $ 7.9 million. In addition, its average revenue reached $ 33.2 million for its top 20 customers. (See Palantir Technologies stock market analysis on TipRanks)

Following Q4 results, Morgan Stanley analyst Keith weiss reiterated his sell note, but raised the price target to $ 19 (downside potential of 18.9%) from $ 17. While Weiss remains bullish on Palantir’s large addressable market, he sees challenges for the company in terms of meeting its revenue target. Additionally, Weiss finds Palantir’s current rating unappealing.

As for the rest of Wall Street, Palantir Technologies has a moderate sell consensus rating based on 4 sell, 2 buy, and 1 wait. The average analyst price target is $ 25.83, implying a potential up 10.2% from current levels.

However, from TipRanks’ Smart score ranking, PLTR scores a 3 out of 10, suggesting that the stock is likely to underperform market expectations.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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