William Blair Reiterates Palantir’s Market Perform Rating

William analyst Louie DiPalma reiterated a Market Perform rating on Palantir

“Yesterday, the U.S.

Navy awarded Palantir a $446 million contract to provide its software to two shipbuilders and over 100 suppliers in the submarine industrial base to accelerate submarine production.

In our view, this contract has the potential to become one of Palantir’s largest programs, even larger than Maven.

We updated our Palantir Dotted Line quarterly contract tracker. Over the past several years, the U.S.

Navy has taken steps to address the supply-chain issues that have resulted in submarine production rates falling below the targeted two per year for the Virginia class and one per year for the Columbia class (two plus one).

On its third-quarter earnings call, General Dynamics (GD $337.37; Market Perform) indicated that the company is beginning to see the fruits of that labor pay off.

General Dynamics for its maritime division reported 14% revenue growth in the third quarter and 22% growth in its second quarter.

Curtiss-Wright (CW $545.03; Outperform), a significant supplier to the Navy, increased its Navy outlook in each of the past two quarters.

The U.S. Navy indicated that there is also the potential to expand the software beyond the submarine industrial base to other platforms.

Palantir already has maritime supply chain partnerships with Hyundai Heavy Industries, Babcock, Saildrone, and Saronic.”

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