Palantir Technologies (PLTR) is expected to secure a major contract with the UK military, a deal valued at about $1 billion (£750 million), according to The Times. The deal is likely to be finalized during President Trump’s state visit. Despite the news, PLTR stock dropped over 3% on Wednesday’s regular trading session.
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The contract would involve the U.K. Ministry of Defence adopting Palantir’s artificial intelligence (AI) technology to help with battlefield targeting. By processing vast amounts of data, the system will provide an overall view of the battlefield, including enemy warships, tanks, and fighter jets, to enable more efficient planning.
Expanded Scope and AI Capabilities
This new deal would be a major expansion of an existing partnership. Initially, Palantir’s technology was being used by the Royal Navy for its maritime defense system. However, with the new deal, PLTR’s tech will likely be applied across the entire armed forces.
The system is expected to integrate data from different sources, including medical records, payroll, and training documents, to help assess the suitability of personnel for deployment. Also, the AI will help in tracking and scheduling maintenance for the UK’s military assets.
Importantly, the deal might also be accompanied by a five-year commitment from Palantir to invest up to $2 billion (£1.5 billion) in the UK.
Is PLTR a Good Stock to Buy Now?
Turning to Wall Street, PLTR stock has a Hold rating, based on five Buys, 13 Holds, and two Sells assigned in the last three months. The average Palantir stock price target is $155.39, which implies a downside risk of 7.86% from current levels.
