Palantir Technologies Inc. (PLTR) Wins a $90M Energy Dept Contract - William Blair

April 5, 2021 6:27 AM

William Blair analyst Kamil Mielczarek reiterated an Underperform rating on Palantir Technologies Inc. (NYSE: PLTR) after news reports surfaced indicating that Palantir recently won a $90 million 5-year contract for the Department of Energy's Safety Analytics, Forecasting & Evaluation Reporting (SAFER) program.

The analyst stated "We expect Palantir to announce this contract soon in a press release or on its first-quarter earnings call. We also expect the Department of Defense to soon announce that Palantir renewed and potentially upsized its $300 million contract for the Special Operations Command (SOC) All Source Information Fusion (ASIF) program. Shares of Palantir in the past have jumped on such contract announcements. While this SAFER contract award and the likely ASIF renewal are positive and will likely lead to short term upside, we reiterate our Underperform rating and expect the downward trend to resume over the longer term on a confluence of factors. In our view, Palantir needs to significantly improve its commercial/enterprise performance, and win more of these types of government contracts to justify its 34 times sales multiple."

For an analyst ratings summary and ratings history on Palantir Technologies Inc. click here. For more ratings news on Palantir Technologies Inc. click here.

Shares of Palantir Technologies Inc. closed at $23.41 yesterday.


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