Palantir Wins Big with $795M Army Deal, Wedbush Upgrades to 'Outperform'
May 27 - Palantir (NASDAQ:PLTR) won a $795 million contract modification from the U.S. Army for its Maven Smart System, boosting the total award to about $1.3 billion. The deal will run through May 2029, with funding and work sites set by individual orders.
Wedbush analyst Daniel Ives sees the contract as a fresh catalyst for the big-data firm, moving his rating to Outperform with a $140 price target, about 13% above current levels. Ives noted that federal AI spending may accelerate under new defence priorities, positioning Palantir to benefit from a wave of government contracts.
Ives also pointed to prospective work on the Golden Dome air and missile defence project, a Trump-era initiative budgeted at $175 billion over three years, with $25 billion proposed for 2026. He suggested that Palantir could play a key role if it secures part of that funding.
As Palantir gears up for more government AI ventures, investors will be watching whether this latest Army award can translate into sustained revenue growth.
Based on the one year price targets offered by 20 analysts, the average target price for Palantir Technologies Inc is $99.81 with a high estimate of $150.00 and a low estimate of $40.00. The average target implies a downside of -19.06% from the current price of $123.31.
This article first appeared on GuruFocus.
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