Shares of cybersecurity services provider Palantir Technologies Inc. (PLTR) has increased by more than 50 percent over the past one month. Company’s stock succeeded to rise despite some bearish remarks, as Palantir continues to receive orders from US government organizations.
Palantir has recently entered the public market but is one of the leading players in the cybersecurity and special services market in the field of military and federal IT infrastructure.
Palantir last week announced the signing of a $44.4 million, three-year contract with the U.S. Administration of Food and Drugs (FDA). A partnership that began about ten years ago is extended by this contract. This includes the development of new systems of data management and information analysis for two FDA divisions: the Center for Drug Evaluation and Research and the Center for Oncology Excellence (OCE). These are major FDA agencies with valuable information on the progress of research and the features of costly drugs and therapies.
Last week, Morgan Stanley analyst Keith Weiss downgraded the stock recommendation of Palantir from “Equal-Weight” to “Underweight” and set a target price of $17, well below current level. The analyst believes that the November rally does not correspond to Palantir’s fundamental indicators and is probably due to long-term investors’ interests. As a consequence, shares in Palantir are now worth more than the stocks of peers in the industry.
In spite of the Bearish comment, Keith Weiss still confirmed Palantir’s potential prospects as a long-term investment destination.
Palantir Technologies Inc. (PLTR) stock rose 5.05 percent on Thursday and was at $27.23 at ring of the bell. Over the past week, the stock added merely 0.70 percent to its value but the gain is an impressive 52.55 percent over the past one month. The company has added more than 186 percent to its value since start of the year with which its current market capitalization stands at $47.16 billion.