This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEBAG0BO_M.jpg
The share price increase adds to the company’s over 6% gain on Wednesday. It currently sits around the $15.20 per share level.
The new contract extends an original one-year deal by three more years to 2026. The company was originally awarded a one-year $40M contract in September 2022.
In a note Thursday, BofA analysts, who maintained a Buy rating and $18 price target on PLTR shares, explained that in March 2023, the one-year deal was increased by $60M and “under this contract, PLTR has been obligated $92.2mn in FY23.”
“While the annualized award levels do not imply upside from current offerings, we positively view the long-term award as it provides a) near-term revenue security, b) upside opportunities (as shown by the original contract modification), and c) a unique position to work closely with the Department of Defense (DoD) developing the nextgen AI and ML solutions,” they said.
“We see the new extended award as a signal that PLTR is executing on its approach to deeper DoD penetration with AI/ML applications,” the analysts added.
