Palantir Analyst Optimistic As Army Halts In-House Data Platform Plans Indefinitely: Retail's Mixed

William Blair said it now appears that the army is leaning toward sticking with Vantage, one of Palantir's largest overall contracts, generating $115M in annual recurring revenue.

Palantir Technologies, Inc. (PLTR) could have received a reprieve as the U.S. Army put on hold plans to develop an in-house data platform that would have replaced the company’s solution, Vantage.

The Army’s System for Award Management (SAM) announced on its website that the Army Data Platform “MATOC IDIQ” has been put on “indefinitely hold” as the Army is reviewing the program’s strategy. 

Following the development, William Blair noted that the Army began the process of developing a successor to the Vantage data platform powered by Palantir in 2023, TheFly reported.

The brokerage said it now appears that the army is leaning toward sticking with Vantage, one of Palantir's largest overall contracts, generating $115M in annual recurring revenue.

The decision to suspend the Army Data Platform 2.0 suggests Palantir will serve as the exclusive long-term prime contractor, the firm added. 

Blair said the move also increases the probability that Palantir’s revenue from the program will be $690 million over the four-year term rather than the minimum $401 million.

Blair has a ‘Neutral’ rating on Palantir stock.

Palantir derived over 63% of its 2024 revenue ($1.20 billion of the $1.90 billion) from the U.S. government.

On Stocktwits, sentiment toward Palantir stock stayed ‘neutral’ (54/100), while message volumes remained at ‘low’ levels.

A bullish watcher recommended buying Palantir on the dip. 

The stock trades off its all-time high of $125.41, hit on Feb. 19. It fell sharply on Friday, dropping 4.71% to $85.85. Friday’s weakness came on the back of macro-induced broader market weakness and Goldman Sachs’ cautious comments on Palantir.

Although the brokerage expressed optimism regarding the company’s ontology offering and its artificial intelligence platform (AIP), analysts at the firm were cautious regarding valuation, Investing.com reported.

A Socktwits user said the valuation appears bloated for a company that has only domestic customers.

Notwithstanding a nearly 32% pullback from the recent high, Palantir stock is up over 13% year-to-date.

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