Palantir Stock Builds Momentum on New Partnership

Investors may object to the current valuation of Palantir Technologies Inc. (NASDAQ: PLTR) stock. But they can’t say that there’s no news to support bullish sentiment. The latest example of the company’s formidable growth expectations is its announcement of the extension of its partnership with Everfox, a leader in cross-domain technology solutions.

According to the press release from Everfox, the partnership is “aimed at supporting customers operating software solutions in classified network environments, including software solutions for joint and integrated command and control.”

Financial details were not immediately available from the release. However, the two companies are already deploying approved data transition formats to some of Everfox’s existing customers. This announcement assures investors that this will extend to additional clients with complex network and operational environment needs.

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Why Is This Significant for Palantir?

The partnership focuses on joint command and control. According to Everfox chief executive officer (CEO) Sean Berg, keeping pace with the volume and complexity of data in modern warfare is a key strategic priority for the United States. The key word there is “modern.”

One reason why PLTR stock is under pressure is the concern that its government business, which accounts for over 50% of the company’s revenue, will take a hit. However, this might be a time when investors are selling first before seeing the whole picture.

For example, Secretary of Defense Pete Hegseth said the Department of Defense (DoD) is looking to reallocate about 8% of the Pentagon’s budget (roughly $50 billion) away from nonlethal programs in the current budget. That money would be shifted to priorities that are more in line with the Trump administration’s policies.

To be clear, Hegseth acknowledges that Elon Musk’s Department of Government Efficiency (DOGE) is working with the DoD to hunt out and eliminate fraud, waste, and abuse. However, the secretary was quick to remark, “With DOGE, we are focusing as much as we can on headquarters and fat and top-line stuff that allows us to reinvest elsewhere.”

That suggests the DoD also focuses on modern warfare, which doesn’t sound bearish for Palantir. Plus, the company is winning contracts on the commercial side of the business that may offset any losses on the defense side.

Palantir Continues to Build Momentum

The Everfox deal is just the latest in a series of deals and partnerships announced by Palantir. The deals are coming in for both sides of the company’s business (i.e., government and commercial).

In March alone, Palantir announced a partnership with Archer Aviation (NYSE: ACHR) and Anduril. The idea is to create a coalition of U.S.-based defense contractors that align with the tools needed in future conflicts.

Palantir also announced a partnership with R1, a leader in revenue cycle management (RCM), that uses its proprietary technology to help tame unchecked administrative healthcare costs. The two companies are partnering to launch R37, an AI-driven lab focused on improving healthcare financial operations.

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Analysts Starting to Look Beyond Valuation Concerns

The Palantir analyst forecasts on MarketBeat have a consensus price target of $74.45 for the stock. While that’s 11% lower than its price on March 31, 2025, it’s up significantly from estimates for much of 2024.

That’s due to the growing institutional investment buying in the third and fourth quarters of last year. Palantir was included in the S&P 500, shifted its listing to the NASDAQ exchange, and recently was included in the S&P 100. All of these moves mean that institutional investors will be buying PLTR stock.

However, the company’s steep valuation—even by tech standards—is why some analysts continue to maintain a Hold rating. The Goldman Sachs Group Inc. (NYSE: GS) analyst Gabriela Borges reiterated a Neutral rating on PLTR with an $80 price target, largely due to valuation concerns.

Some of that optimism is due to the company’s commitment to spend on R&D, which it can afford to do since it currently has no debt on its balance sheet.

Written by Chris Markoch

Read this article online ›

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