William Blair analyst Louie DiPalma has maintained their neutral stance on PLTR stock, giving a Hold rating on July 16.
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Louie DiPalma has given his Hold rating due to a combination of factors related to Palantir Technologies’ recent developments and future prospects. The recent $100 million contract awarded to the Anduril-Palantir team by the U.S. Army for the Next-Generation Command and Control (NGC2) project is a significant achievement, highlighting Palantir’s strong position in the defense sector. However, while this contract is a positive development, it is only a part of the broader financial picture for Palantir.
Despite the increase in annual recurring revenue (ARR) from government contracts, which rose to $135 million in the second quarter from $27 million the previous year, the long-term growth potential and sustainability of these revenues remain uncertain. The projected increase in ARR to over $150 million in the coming years is promising, but the competitive landscape and dependency on government contracts pose risks. Therefore, DiPalma’s Hold rating reflects a cautious optimism, balancing the potential for growth with the inherent uncertainties in Palantir’s business model.
In another report released on July 16, Mizuho Securities also upgraded the stock to a Hold with a $135.00 price target.