- Palantir agreed a deal with Army Futures Command’s to supply its flagship software Gotham
- Palantir share price is up over 40% higher this week and 160% higher compared to the IPO price of $10.00
- Numerous analysts raised their price targets on PLTR
Shares of Palantir (NYSE: PLTR), which is focused on software developing in the defense industry, are trading over 160% higher in November on a series of positive catalysts.
Fundamental analysis: Palantir signs a prototype deal with Army Futures Command
In a latest positive catalyst for the stock, Palantir struck a new prototype deal with Army Futures Command’s network modernization team to supply flagship data management software, Gotham.
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Palantir said it will integrate its Gotham app with the Army’s new mission command software app Command Post Computing Environment (CPCE). This application represents a key step in the Army’s network modernization and redesign strategy that will merge a number of its battlefield networks into one. AFC and Palantir inked a prototype other transaction agreement (OTA).
The Army’s so-called “Common Data Fabric” initiative involves integrating the networks as well as the data that flows on them and creating that fabric is “literally what Palantir does for business,” said Doug Philippone, Palantir’s global defense lead.
“We lay on top of those existing systems and combine them,” Philippone said, referring to the Army’s networks.
The financial details regarding this OTA contract were not disclosed, but it’s clear that the Army pours hundreds of millions of dollars for network modernization on a yearly basis. Under the OTA, Palantir will develop a prototype to enhance the visibility for the data that’s on the Army’s network, but the collaboration could be continued if the prototype turns out to be successful.
“Palantir is proud to provide a prototype engagement that will allow the Army to inform network design decisions by assessing how modern data fabric and security solutions can enable enhanced situational awareness, improve command and control, and improve collaboration with joint, allied and coalition partners,” the company said.
Technical analysis: A vertical move higher
Palantir share price is up over 40% higher this week to trade above the $26 mark, which is over 160% higher compared to the IPO price of $10.00.
Palantir stock daily chart (TradingView)
Analysts are raising their price targets on PLTR given the stock’s most recent performance. It is hard to see this trend sustainable given the meteoric rise recently, hence a pullback from these levels is more than likely.
Software company Palantir signed a new deal with Army Futures Command to develop a prototype of a data management software that would improve data visibility.