Hold Rating on Palantir Technologies Amidst Increased Defense Contract and Uncertain Future Trajectory

William Blair analyst Louie DiPalma has maintained their neutral stance on PLTR stock, giving a Hold rating on May 7.

Louie DiPalma has given his Hold rating due to a combination of factors related to Palantir Technologies’ recent developments. The U.S. Department of Defense significantly increased the contract ceiling for Palantir’s Maven Smart System (MSS) software licenses, indicating strong adoption by the U.S. Combatant Commands. This increase from $480 million to $1.275 billion suggests a continued rise in spending on MSS licenses, with an average annual spend projected at $272.5 million over the next four years.
Despite this positive development, the Hold rating reflects a balanced view, considering both the potential for growth and the uncertainties that remain. While the increased contract ceiling highlights Palantir’s growing role in defense technology, the future trajectory of spending and adoption rates is still subject to further clarification. As such, the Hold rating suggests a cautious approach, acknowledging the company’s promising prospects while waiting for more concrete data and developments.

In another report released on May 7, Citi also maintained a Hold rating on the stock with a $115.00 price target.