Shares of AI software firm Palantir Technologies (PLTR) are down at the time of writing despite securing a major expansion deal with South Korea’s HD Hyundai, according to Reuters. The agreement, which was confirmed by Palantir executives, will see the company provide additional software to the industrial giant over several years. Importantly, a source familiar with the matter said that the contract is worth hundreds of millions of dollars.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
It’s worth noting that the new deal builds on a partnership that began in 2021, when HD Hyundai first started using Palantir’s software to streamline its shipbuilding operations. Since then, the companies have said that the technology has helped HD Hyundai manufacture ships roughly 30% faster by improving coordination and operational efficiency. To formally mark the deal, the two companies planned a signing ceremony at Palantir’s office space during the World Economic Forum in Davos, Switzerland.
Nevertheless, Palantir CEO Alex Karp made it clear that international growth is not the company’s main priority. While he described South Korea as one of the most innovative and creative markets in the world, he said that Palantir is being selective about selling outside of the U.S. Indeed, Karp explained that demand in America remains so strong that the company can afford to focus primarily on its home market while pursuing overseas deals only when they are especially attractive.
Is PLTR Stock a Good Buy?
Overall, analysts have a Hold consensus rating on PLTR stock based on five Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $192.88 per share implies 13.6% upside potential.
