Palantir gains as Piper Sandler boosts PT on 'rapidly growing' U.S. government expansion

Apr. 22, 2022 8:03 AM ETPalantir Technologies Inc. (PLTR)By: Chris Ciaccia, SA News Editor33 Comments

Palantir headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

Palantir Technologies (NYSE:PLTR) gained on Friday after investment firm Piper Sandler raised its price target on the data analytics software company, noting it should see growth in its U.S. government business.

Analyst Weston Twigg raised the price target to $16 from $15 and reiterated the firm's overweight rating, noting that its largest U.S. government customer is the Department of Defense, but it has opportunities to expand into other areas.

"[Palantir] has gained traction with agencies beyond Defense, such as the [Department of Veterans Affairs] and [Department of Energy], which could provide it with ongoing upside," Twigg wrote in a note to clients.

Palantir (PLTR) shares were slightly higher to $12.34 in premarket trading on Friday.

Twigg added that Palantir generated 44% of its 2021 revenue from the U.S. government and expects that to grow more than 20% this year, calling it a "stable source of revenue."

In addition, Twigg pointed out that COVID-19 was a catalyst and could provide long-term benefits for Palantir, as it expanded its partnerships with several government agencies, including the Centers for Disease Control and Prevention, the National Institute of Health, the Food and Drug Administration and the Air Force, as all looked to "rapidly adopt" technology to track cases and utilize resources during the pandemic.

On Wednesday, investment firm RBC upgraded the Palantir (PLTR), citing several reasons, including Russia's invasion of Ukraine.

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